The Purchasing Process

True / False |

1. ​Enterprises are relying increasingly on external suppliers to provide only materials and products, not information technology, services, and design activities.   | a.  | True |

  | b.  | False |

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2. ​The objectives of a world-class purchasing organization do not need to evolve beyond the traditional mantra of ensuring we “get a good price!”   | a.  | True |

  | b.  | False |

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3. ​Organizations are constantly looking for people who have developed the skills necessary to deal with the narrow variety of tasks faced by purchasing.   | a.  | True |

  | b.  | False |

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4. ​If a supplier’s components are defective and causing problems for manufacturing, then purchasing must find ways to improve supplier quality.   | a.  | True |

  | b.  | False |

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5. ​Purchasing can directly affect (positively or negatively) the long-term growth, revenue, and operating outcomes and plans of stakeholders and business units.   | a.  | True |

  | b.  | False |

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6. ​The authority to review and challenge specifications (for products or for services) is within purchasing’s span of control in managing demand, although internal stakeholders sometimes dispute this right.   | a.  | True |

  | b.  | False |

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7. ​Purchasing’s right to evaluate and select suppliers means that sales representatives are not allowed to talk with non-purchasing personnel.   | a.  | True |

  | b.  | False |

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8. ​Contract management should be used to trigger proactive sourcing events only after a contract expires.   | a.  | True |

  | b.  | False |

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9. ​When creating a forecast for a needed product or service, internal customers may not always be able to express exactly what it is they will need at a future point in time.   | a.  | True |

  | b.  | False |

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10. ​For routine, off-the-shelf items, the purchase requisition may contain all the information that purchasing requires.   | a.  | True |

  | b.  | False |

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11. ​When...