Procurement: Purchasing Management Association
Introduction to Procurement
Introduction to Procurement Quiz # 1
True/False (1 mark per question)
1. Competition today is no longer between firms; it is between the supply chains of those firms. True False 2. There is a definitive and prescriptive set of supply chain measures that applies to all supply chains. True False 3. The knowledge and skills demanded of today’s supply professional is the same as before. True False 4. The key to the success of any company is the quality of its employees. True False 5. In quality control, the emphasis has shifted from detecting defects at the time of receipt or use to prevention early in the materials‐sourcing process. True False 6. A value chain is a subset of the supply chain. True False
© Purchasing Management Association of Canada
Introduction to Procurement
7. Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups. True False 8. Purchasing and supply management has minimal impact on product and service quality. True False 9. True False 10. Processes usually move across functional boundaries. True False 11. The buyer may assume that the purchasing cycle ends with the receipt of an ordered item or the selection of a supplier. True False 12. The way that MRO items are typically dispersed throughout an organization makes monitoring MRO inventory relatively simple. True False 13. Purchasing personnel are no longer involved with transportation buying and the management of inbound and outbound material flows as this is now considered to be a logistics management function. True False The routine ordering and follow‐up of basic operational supplies is a strategic responsibility.
© Purchasing Management Association of Canada
Introduction to Procurement
14. Some purchasing departments spend 80% of their time managing 20% of their total purchase dollars. True False 15.
Introduction to Procurement Quiz # 1
True/False (1 mark per question)
1. Competition today is no longer between firms; it is between the supply chains of those firms. True False 2. There is a definitive and prescriptive set of supply chain measures that applies to all supply chains. True False 3. The knowledge and skills demanded of today’s supply professional is the same as before. True False 4. The key to the success of any company is the quality of its employees. True False 5. In quality control, the emphasis has shifted from detecting defects at the time of receipt or use to prevention early in the materials‐sourcing process. True False 6. A value chain is a subset of the supply chain. True False
© Purchasing Management Association of Canada
Introduction to Procurement
7. Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups. True False 8. Purchasing and supply management has minimal impact on product and service quality. True False 9. True False 10. Processes usually move across functional boundaries. True False 11. The buyer may assume that the purchasing cycle ends with the receipt of an ordered item or the selection of a supplier. True False 12. The way that MRO items are typically dispersed throughout an organization makes monitoring MRO inventory relatively simple. True False 13. Purchasing personnel are no longer involved with transportation buying and the management of inbound and outbound material flows as this is now considered to be a logistics management function. True False The routine ordering and follow‐up of basic operational supplies is a strategic responsibility.
© Purchasing Management Association of Canada
Introduction to Procurement
14. Some purchasing departments spend 80% of their time managing 20% of their total purchase dollars. True False 15.