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Questions and Answers

What are the six procurement methods used by procurement teams in a company?

Open tendering, restricted tendering, request for proposal, two-stage tendering, request for quotations, and multiple-source procurement.
Open bidding, restricted bidding, request for proposal, two-stage bidding, request for quotations, and single-source procurement.
Open tendering, closed tendering, request for quotation, single-source procurement, two-stage tendering, and request for proposal.
Open tendering, restricted tendering, request for proposal, two-stage tendering, request for quotations, and single-source procurement. (correct)

What does procurement complexity refer to?

The quality of goods or services purchased
The level of difficulty involved in buying goods or services (correct)
The ease of buying goods or services
The cost of buying goods or services

What is the purpose of a purchasing system in a business?

To acquire everything the business needs
To control cash inflows
To control cash outflows and acquire only what is needed at reasonable prices (correct)
To make purchases at unreasonable prices

What is the difference between procurement and purchasing?

Procurement is the process of acquiring goods and services, while purchasing is the set of steps associated with executing a transaction between organizations. (D) Signup and view all the answers

What is the purpose of the first procedure in two stage tendering?

To score technical proposals based on relevance to the procurer's needs (D) Signup and view all the answers

Why is procurement planning important?

It is a prerequisite for successful implementation of projects (A) Signup and view all the answers

What is a key input to a purchasing system?

The production planning system (B) Signup and view all the answers

What was the initial focus of purchasing in organizations?

Tactical relationships and low price (B) Signup and view all the answers

What is open tendering?

A process where companies are invited to bid on goods in an open competition or solicitation manner. (C) Signup and view all the answers

When does the bidder submit a financial proposal in two stage tendering?

After the technical proposal is agreed upon (D) Signup and view all the answers

What determines the winning bidder in two stage tendering?

The combined score of both proposals (B) Signup and view all the answers

Which procurement method involves requesting a detailed proposal from potential suppliers?

Request for proposal (D) Signup and view all the answers

Is it possible for the production planning system to automatically place replenishment orders with suppliers?

Yes, it is possible (D) Signup and view all the answers

How does procurement planning facilitate efficient treasury management?

By spreading out annual procurement activities (B) Signup and view all the answers

What is the definition of purchasing?

The set of steps associated with executing a transaction between organizations and their suppliers to buy goods and services. (D) Signup and view all the answers