In general, a difference exists between purchasing for primary activities and indirect materials. Which of the following characteristics is not a characteristic of purchasing indirect materials?
A very large number of orders.
A very large product assortment.
The average order size is small.
A limited number of suppliers.
In general, a difference exists between purchasing for primary activities and indirect materials. Which of the following characteristics is not a characteristic of purchasing indirect materials?
Engineering and production are mostly dominant in purchasing decision-making.
Purchasing direct materials receives less attention from the management.
Average order size is high.
A higher average order size.
In general, a difference exists between purchasing for primary activities and indirect materials. Which of the following characteristics is not a characteristic of purchasing indirect materials?
Engineering and production are mostly dominant in purchasing decision making.
Engineering and production are mostly dominant in purchasing decision making.
Average order size is high.
The large number of purchasing orders means high purchasing costs, in comparison with the purchase value.
Consider the following statements: I. Van Weele defines purchasing as: ‘the management of the company’s external resources in such a way that the supply of all goods, services, capabilities and knowledge which are necessary for running, maintaining and managing the company’s primary and support activities is secured at the lowest price'. II. Purchasing includes all activities that are included in an invoice, from external parties, for the company.
Both statements are correct.
Both statements are incorrect.
Statement I is correct and Statement II is incorrect.
Statement I is incorrect and Statement II is correct.
Which of the following statements about the purchasing process model is incorrect?
The process starts with the (internal) customer and ends with the supplier.
The six steps are: determining specification, supplier selection, negotiation, ordering, monitoring and follow-up, and evaluation.
‘Tactical purchasing’ refers to the first three steps in the process.
‘Procurement’ refers to all activities used in order to deliver the product of the supplier to the final destination.
Which of the following statements, about the purchasing process model, is incorrect?
The term ‘sourcing’ refers, in general, to the steps ‘selecting' and contracting’.
The process starts with the supplier and ends with the (internal) customer.
‘Buying’ refers to all steps except for ‘determining specification’.
‘Monitoring’ is generally not seen as a part of ‘tactical purchasing’
Which of the statements below, about strategic, tactical and operational purchasing, is correct?
Decisions about outsourcing are, typically, examples of decisions made on a strategic level.
Senior buyers mainly operate on the strategic purchasing level.
Decisions about multi- versus single-sourcing are typical examples of operational purchasing decisions.
Negotiation about supplier contracts are typically operational tasks.
Which of the statements below, about the purchasing process model of Van Weele, is not correct?
‘Monitoring’ is generally seen as a part of ‘operational purchasing’.
The term ‘sourcing’ refers, in general, to the steps ‘ordering’ and ‘evaluation’.
The process starts with the (internal) customer and ends with the supplier.
‘Buying’ refers to all steps, except for ‘specifying’ and ‘follow up and evaluation’.
According to the DuPont-analysis, purchasing decisions can influence the return on investment and the net working capital employed by the company. Which of the following factors does not positively influence the turnover rate of the net working capital, employed by the company?
Decrease in inventory.
Longer terms of payment.
Less frequent delivery by suppliers.
Outsourcing.
According to the DuPont-analysis, purchasing decisions can influence the return on investment and the net working capital employed by the company. Which of the following factors does not positively influence the return on investment?
Decrease in inventory.
Offshoring.
Competitive bidding.
Research for substitutable materials.
Purchasing can have, indirectly, a positive distribution to the operating income. Which of the following statements does not, indirectly, have a positive influence?
Involvement of suppliers in product development.
Lowering of quality costs.
Extension of terms of payments.
Increase of work flexibility.
A certain organization would like to determine the return on investment and the following information is given: Turnover: € 500,000,- Operational costs: € 400,000,- Net capital: € 400,000,-
Consider the following statements: I. The operational turnover is 25%. II. The return on investment is 25%.
Both statements are correct.
Both statements are incorrect.
Statement I is correct and Statement II is incorrect.
Statement I is incorrect and Statement II is correct.
An organization would like to determine the return on investment and the following information is available: Turnover: € 1,000,000.- Personnel: € 300,000.- Depreciation: € 100,000.- Materials, services and consumption of goods: € 500'000.- Company capital: € 200,000.- Long-term Loan: € 400,000.- Short-term loan: € 100,000.- Creditors: € 100,000.-
Consider the following statements: I. The turnover rate is 1.25. II. The return on investment is 12.5%
Both statements are correct.
Both statements are incorrect.
Statement I is correct and Statement II is incorrect.
Statement I is incorrect and Statement II is correct.
Which of the following statements, about the definition of purchasing, is not correct?
‘Purchasing’ can best be indicated by the term ‘procurement’.
In the case of ‘ordering’, no negotiation about price or conditions takes place.
‘Procurement’ includes the material planning, inventory management, traffic and transportation, incoming inspection, quality and control, and assurance.
The difference with buying is that, with purchasing, a discussion exists about the specifications that form the purchasing process.
Which of the following characteristics is not a characteristic of investment goods?
The use of electronic auctions.
Extensive functional specifications.
The use of cross-functional sourcing teams.
The application of project management principles in the purchasing process.
Maintenance, Repair and Operating Supplies (MRO-supplies) have specific characteristics. Which of the following characteristics is not a typical characteristic of the purchasing of MRO-supplies?