Final

Question 1

Purchasing definition

Answer 1

Refers to the process of ordering and receiving goods an services

Question 2

Procurement definition

Answer 2

Overreaching functions that describes the processes needed to acquire goods and services.
Wider than purchasing (contracts, research etc.

Question 3

Sourcing

Answer 3

This activity relates the most to developing the most appropriate supplier strategies.

Question 4

Three main sub processes of procurement

Answer 4

Strategic sourcing, Managing supplier relations and ordering cycle

Question 5

Procure to pay process

Answer 5

RDMSSCCRPPF
Recognise the need
Define specification
Make or buy decision
Source identification
Source election
Contracting
Contract management
Receipt
Possible inspection, evaluation of the performance
Payment
Fulfillment of the need

Question 6

ABC analysis proportions

Answer 6

A=20%items=80% value
B=30%items=15% value
C=50%items=5%value

Question 7

What does XYZ analysis focus on?

Answer 7

Sales units

Question 8

Decentralized purchasing characteristics

Answer 8

Local buyer has better knowledge of the needs
Local buyer is able to respond quickly
Output responsibility when local management can´t select suppliers

Question 9

Centralized purchasing characteristics

Answer 9

Economies of scale, improving purchasing power
Avoidance of prince anomalies alongside the organization, standardizing
Better overall stock management
Economies of staffing and clerical effort

Question 10

Responsibilities of central office in hybrid organizations

Answer 10

Determining policies
Negotiating contracts
Legal matters
Coordination of inventory
Education and development of supplies personnel

Question 11

Methods to organize purchasing function

Answer 11

BY:
End product
Category
Value classification

Question 12

What is retail?

Answer 12

Selling consumer goods and services to consumers in small quantities, in different distribution channels

Question 13

Characteristics of concession

Answer 13

Certain brand has their own space in a department store
Retailer sells he products but does not owns them at any point.
The brand supplier pays a share of sales

Question 14

Consignment

Answer 14

Retailer buys the goods from the supplier after they have been sold to the customers.

Question 15

Krajlics matrix

Answer 15

Procurement positioning tool
From Low to high
Strategic importance to purchasing or effect on results(Y)
Complexity of the market (X)
LSRB
Leverage items, Strategic Items, Routine Items, Bottleneck items.

Question 16

Supplier preferencing

Answer 16

From low to high
Account attraction (Y)
Relative value (X)
DCNE
Development, Core, Nuisance(non-critical), Exploitable

Question 17

TCO

Answer 17

Total cost of ownership

Question 18

ABC

Answer 18

Activity based costing