Purchasing Management Test Essay

There are many benefits to using ED’. For a smaller company, EDI may help Selected Answer: all of the above Answers: keep a valued trading partner or customer gain new customers or trading partners none of the above Question 2 in the supply chain can be defined as the extent of contentment with the relationship.

Satisfaction Cooperation Good service Good supplier relations Good public relations Question 3 The notion of interfirm power holds its roots in literature and has been extensively developed by marketing channel researchers. social science management science organizational behavior organizational science operations science Question 4 As a each department makes a direct contribution to the overall success of the total organization. rofit center cost center profit group cost group cost division Question 5 A more devastating downside of is the buyer/seller relationship damage that may result from this method of buying. The buyer runs the risk of alienating both current and potential sources for the goods/services. reverse auctions traditional auctions silent auctions eBay Overstock. com Question 6 may not be the solution for all commodity buying. As an example, if there are too few sellers, will not yield the best price.

Reverse auctions / reverse auctions Traditional auctions / traditional auctions Traditional auctions / reverse auctions Reverse auctions / traditional auctions Question 7 Though has received abundant recognition over the last few decades from both researchers and practitioners alike, the concept of a s perhaps as old as or even older than business itself. partnering/ partnership buyer relations / partnering partnering / relationships partnering / partnership strategic partners / buyer-seller relations partnering/ buyer-seller partnerships Question 8 standards can be applied to both manufacturing and service firms using the same methodology.

SPC provides input to the approach. Six-sigma / six-sigma Eight alpha / eight alpha Sigma nine / sigma nine One omega / one omega Six epsilon / six epsilon Question 9 Exploration of the effects of on factors of the supplier-buyer alliance rovides the key to understanding the concept of the power-partnership link… power politics negotiations processes persuasion Question 10 There are also some risks when using EDI that should be considered. Which of the following should be considered when using EDI? The machine and training cost will add up to a large amount and cutting corners may cost a company more than it saves.

Security is also an issue Procedural safeguards have not kept up with technology in this area. The problem is exposure to outside users, which opens up a doorway to false messages These messages may come in the form of a person who is not a upplier sending data or the data being interrupted and/or altered. A decision must be made whether to trade singularly through EDI or use both EDI and traditional methods Question 1 1 By definition, the price in is driven down by limited competition exists, then the price will not the buyer a substantial amount of money. everse auctions / competition / decrease traditional auctions / competition / decrease reverse auctions / competition / increase traditional auctions / participation / increase reverse auctions / participation / decrease so if only enough to save Question 12 2. 4 out Of 2. 4 points Before firms can enjoy the benefits of a buyer-supplier partnership, they must first develop and design the partnership implementation process.

A supplier partnership involves a significant attitudinal as well as structural change from traditional supply arrangements, so the allying firms must be meticulous to ensure that a true win-win partnership is developed. True False Question 13 The seven (7) steps to effectively implement e-procurement are: (1 ) Start With non-critical items. (2) Bring all internal stakeholders on board with your new procurement process to establish internal customer behavior. (3) Streamline, map, test, roubleshoot, and improve the process before expanding it to external suppliers.