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22 Cards in this Set
- Front
- Back
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1. Which of the following is an objective of purchasing?
A. To keep many sources of supply available to ensure competitive pricing B. To control budgetary expenditures of all employees through sound PO control C. To obtain goods and services of the required quality and right cost D. To ensure that goods are always purchased at the lowest price |
C
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2. In a purchasing system, which of the following originates with the department or person who will be the ultimate user?
A. Purchase requisition B. PO C. Vendor selection D. Request for quotation |
A
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3. Which type of sourcing is set up when a product is unique and available from only one source?
A. Single sourcing B. Sole sourcing C. Multiple sourcing D. Double sourcing |
B
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4. Which of the following is the next step in the purchasing cycle after a requisition is generated?
A. Follow up B. Approve payment C. Receive goods D. Issue PO |
D
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5. Which of the following categories of a supplier agreement covers specifications, allowable defects, and grade?
A. Price B. Term C. Quality D. Quantity |
C
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6. Which of the following is a major objective of distribution inventory management?
A. To provide the required level of customer service B. To minimize the costs of warehouse space C. To always have enough of everything on hand so there are no stockouts D. To minimize labor costs |
A
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7. Which of the following is NOT considered a function of physical distribution?
A. Transportation B. Production control C. Distribution inventory D. Warehousing |
B
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8. Which of the following four P’s influences how physical distribution planning and execution addresses product volume, location of demand, and demand fluctuations?
A. Product B. Price C. Place D. Promotion |
D
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9. Considering the service desired and the relative cost of the items, which of the following would you most likely ship by truck?
A. Regular shipment of cut flowers direct to a florist shop B. Regular shipments of iron ore C. Regular shipments of grain D. Emergency maintenance parts |
A
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10. Total line haul costs will vary with which of the following?
A. Distance moved B. Packaging C. Customer discounts D. Perishability of the goods |
A
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Usually spare parts and finished goods located in the distribution system (warehouses or in-transit between warehouses and the consumer)?
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DISTRIBUTION INVENTORY
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The groupings of management functions supporting the complete cycle of material flow, from the purchase and internal control or production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product?
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MATERIALS MANAGEMENT
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The purchaser’s authorization used to formalize a purchase transaction with a supplier?
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PURCHASE ORDER
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The activities related to receiving, storing, and shipping materials to and from production or distribution locations?
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WAREHOUSING
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The establishment of a working relationship with a supplier organization whereby two organizations act as one?
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SUPPLIER PARTNERSHIP
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An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise?
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CONTRACT
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Selecting the required quantity of specific products for movement to a packaging area (usually in response to one or more shipping orders) and documenting that the material was moved from one location to shipping?
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ORDER PICKING
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A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, or recycling?
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REVERSE LOGISTICS
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The term used in industry and management to denote the function of and the responsibility for producing materials, supplies, and services?
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PURCHASING
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The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer?
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PHYSICAL DISTRIBUTION
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An authorization to the purchasing department to purchase specified materials in specific quantities within a specified time?
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PURCHASE REQUISITION
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In warehousing, the consolidation of several units into larger units for fewer handlings?
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UNITIZATION
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