Purchasing and Marketing Concepts

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What is the primary goal of value analysis?

To investigate all components of an existing product or service

To analyze market trends and consumer preferences

To identify unnecessary costs and eliminate them (correct)

To improve product quality and performance

Which statement best describes the 'make or buy' decision in purchasing?

It refers to the choice between producing starting with raw materials or purchasing pre-assembled components

It is the decision to purchase a product or service from an external supplier or produce it in-house (correct)

It is the process of selecting the most cost-effective method of acquiring goods or services

It determines whether to invest in manufacturing capabilities or outsource production entirely

What is the purpose of writing specifications in the purchasing process?

To establish the criteria for evaluating and selecting suppliers

To outline the procedures for placing purchase orders

To define the required quality standards and characteristics of the product (correct)

To determine the pricing and negotiation strategies

Which statement accurately describes the 'informal' method of purchasing?

It is suitable for urgent needs, small orders, or when immediate delivery is required Signup and view all the answers

What is the first step in the purchasing process?

Recognition of the need for a product or service Signup and view all the answers

Which of the following is NOT typically considered a part of the marketing channel?

Consumers Signup and view all the answers

What technique helps manufacturers determine the best amount of inventory to order and how often it should be ordered?

Economic Order Quantity (EOQ) Signup and view all the answers

Why is Supply Chain Visibility important in inventory control?

To detect and respond quickly to changes in demand or supply Signup and view all the answers

What is JIT Manufacturing aimed at achieving?

Producing products only when needed by suppliers and customers Signup and view all the answers

Why is effective vendor management essential for purchasing success?

To ensure timely delivery and quality of goods or services Signup and view all the answers

What role does negotiation play in vendor management?

To secure favorable terms, pricing, and quality from suppliers Signup and view all the answers

How does Demand Forecasting impact purchasing decisions?

By accurately predicting future demands for ordering materials Signup and view all the answers

Which of the following is NOT a key factor in vendor selection?

Vendor's location Signup and view all the answers

What is the primary purpose of establishing Service Level Agreements (SLAs) with vendors?

To specify expectations related to delivery times, product quality, and operational efficiency Signup and view all the answers

Which of the following is NOT a key element of effective negotiation skills?

Seeking solely personal gains Signup and view all the answers

What is the primary purpose of contract negotiation with vendors?

To establish long-term business relationships and profitability Signup and view all the answers

Which of the following is NOT mentioned as a key aspect of vendor management?

Inventory control Signup and view all the answers

What should companies focus on to create robust purchasing strategies?

Inventory control, vendor management, and negotiation skills Signup and view all the answers

Purchasing and Marketing Concepts

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