20 Questions
What is the main risk of outsourcing services?
Quality is the main risk of outsourcing services
Which of the following services is typically outsourced?
Warehousing and personnel
What are the advantages of electronic procurement?
Improve purchasing efficiency and reduce procurement prices
What are the disadvantages of electronic procurement?
Both a and b
What is the main reason for a firm to have a single source supplier?
Price and/or volume discounts and better quality control
Which of the following is not a characteristic of purchasing alliances?
Increased inventory costs and material flow control
What is a key reason for outsourcing materials?
All of the above
What is a risk of outsourcing materials internationally?
All of the above
What is a key characteristic of JIT purchasing?
Minimizes inventory levels and increases productivity
What type of JIT purchasing contract guarantees a specified volume over an agreed-upon time?
Volume contract
Which of the following is NOT a key objective of purchasing?
Maximize profit margins for the company
Which of the following activities is NOT typically part of the purchasing process?
Negotiating employee salaries
What is the primary purpose of the 'Seven R's of Purchasing'?
To ensure cost-effective procurement
Which of the following is a key factor in determining the level of investment required for a purchase?
The type of purchase
Which of the following is NOT a typical interface between purchasing and integrated logistics?
Product design and development
What is the primary purpose of the 'item procurement importance matrix'?
To prioritize purchasing activities
Which of the following is a potential benefit of outsourcing services?
Reduced operational costs
Which of the following is a key factor in evaluating potential outsourcing opportunities?
The company's core competencies
What is the primary advantage of outsourcing non-core services?
Access to specialized expertise
Which of the following is a potential risk associated with outsourcing services?
Loss of control over processes
Test your knowledge on when purchased materials are delivered, who delivers them, the routing of inbound flow, and control of freight movement. Includes types of purchases, buying situations, and key concepts in supply chain management.
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