Unit 2: Demand Management Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary objective of demand management?

To analyze the supply industry without assessing needs

To ensure that resources needed are delivered at the right time, price, and place (correct)

To lower costs by minimizing resource quality

To acquire resources regardless of time or price

Which of the following is NOT a step in the demand management process?

Linking requirements to the budget

Determining specifications precisely

Conducting a needs assessment

Ignoring previous expenditures (correct)

Why is specification of goods/works or services important in demand management?

It ensures that the right resources are procured to meet identified needs (correct)

It allows flexibility in purchasing any available goods

It helps in random procurement without guidelines

It prevents thorough assessment of future needs

Which of the following is a demand consideration for accounting officers/authorities?

Analyzing previous expenditures for insights into past needs Signup and view all the answers

What role does demand management play in strategic planning and budgeting?

It should form part of the annual strategic planning and budgeting process Signup and view all the answers

How can institutions optimize methods to satisfy needs?

By considering procurement from other institutions Signup and view all the answers

What is the first phase of Supply Chain Management (SCM)?

Demand management Signup and view all the answers

What should be included in a total needs assessment?

Future needs as well as current needs identified in the strategic plan Signup and view all the answers

What elements should be considered when planning procurement contracts?

Economic order quantity and lead times Signup and view all the answers

What should be included in specifications for goods or services during procurement?

Technical specifications and performance standards Signup and view all the answers

In a preferential procurement strategy, what is a key consideration?

Enhancing Black Economic Empowerment Signup and view all the answers

What is recommended regarding references to brand names in specifications?

To avoid them unless absolutely necessary Signup and view all the answers

What phrase should be added if a brand name is referenced in a specification?

'or equivalent' Signup and view all the answers

Which body is responsible for standards in procurement specifications?

Standards South Africa (SABS) Signup and view all the answers

Why should the quality of goods/services not be over-specified?

To allow for suppliers to provide alternative options Signup and view all the answers

When should individual contract goals be identified in procurement?

After industry and community consultations Signup and view all the answers

Study Notes

Demand Management Objectives

Aim to ensure resource delivery aligns with strategic institutional needs.
Focuses on timely, cost-effective acquisition of the right quantity and quality.
Involves conducting a comprehensive needs assessment integral to strategic planning.

Demand Management Process

Initiation of demand management occurs through assessing needs for goods and services.
Precise specifications for products are established.
Requirements are aligned with budgetary constraints.
Analysis of the supplier industry is performed to ensure capacity and capability meet demand.

Integrated Planning and Budgeting

Demand management is essential for annual strategic planning and budgeting within public institutions.
Forms the foundation for developing effective Supply Chain Management (SCM) plans.

Demand Considerations for Accounting Authorities

Comprehensive understanding of both current and future needs is crucial.
Requirements must be closely connected to budget allocations.
Detailed specifications must be determined to facilitate procurement.
Past expenditure analysis aids in understanding previous fulfillment of needs.
Consideration of optimal procurement methods, including inter-institutional collaborations, is necessary.
Identification of requirement frequency helps in planning.
Economic order quantity calculations are vital for cost-efficiency.
Lead and delivery times must be clearly defined.
Industry and commodity analyses guide informed decision-making.

Preferential Procurement Strategy

Incorporates goals such as promoting Black Economic Empowerment (BEE) per Preferential Procurement Regulations.
Individual contracts should reflect identified goals after consultation with relevant industries and communities.

Importance of Goods/Works or Services Specification

Specifications in bidding documents should encourage competition while ensuring quality performance requirements are met.
Acceptance of recognized standards from bodies like Standards South Africa (SABS) and the International Standards Organisation is recommended.
References to specific brands or catalogue numbers should be avoided unless necessary, with "or equivalent" added for clarity.
Specifications should allow for alternatives with similar performance to broaden competition while maintaining quality thresholds.
Over-specification of quality requirements risks limiting participation from potential suppliers.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on demand management through a series of self-assessment questions. This quiz covers objectives, processes, demand considerations, and the importance of specifications for goods and services. Perfect for accounting officers and authorities seeking to enhance their understanding of demand management.