MGT 333 Ch. 4

Maverick buying is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

False

Information flows:

between and among supply, and other internal functions and external sources.

Online reverse auctions are best suited for situations where:

specifications are clearly defined, there is a competitive supply market with qualified suppliers willing to participate, and the buyer is prepared to switch suppliers if necessary.

Efficient and effective supply processes are needed because of:

the large volume of items, dollar value, severe consequences of poor performance, the potential contribution to organizational objectives, and the need for an audit trail.

One purpose of a requisition is:

to clarify the description of need before communicating with potential suppliers.

Improving the efficiency and effectiveness of the process for small value orders can be achieved through:

vendor/supplier managed inventory systems and the use of purchasing cards.

Expediting:

may be caused by the buyer or the supplier.

The greatest opportunity to affect value in the purchasing process is when:

needs are recognized and described.

Blanket purchase orders:

reduce costs by decreasing the number of purchase orders issued.

If the buyer has a clear and unambiguous description or specification, and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:

request for quotation (RFQ).