Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
32 Cards in this Set
- Front
- Back
|
When special requirements exist and the buying organization is willing to assume responsibility for results, such as procurement for the armed forces, this prescriptive method is called a(n): |
material and method of manufacture specification |
|
|
A request for quotation that asks for a "brand or equal": |
shifts responsibility for establishing equality or superiority to the bidder. |
|
|
Early supply and supplier involvement: |
helps ensure that what is specified is procurable and represents best value. |
|
|
When buying with a performance or function specification: |
it may be difficult to compare quotations and the supplier may include a risk allowance in the price. |
|
|
Simplification: |
is an attempt to concentrate production on the most important product sizes.
|
|
|
When a specification is formulated by the buying organization, often on the basis of standards set by governmental or technical societies, it is called a(n): |
individual specification |
|
|
About 70 percent of the opportunity for value improvement lies in: |
need identification and specification |
|
|
Repetitive requirements should be purchased by: |
an acquisition process or system |
|
|
The inability to store services: |
means timing is critical to successful service acquisition. |
|
|
In terms of corporate social responsibility, the role of supply managers is: |
broadly defined as actions at home and offshore. |
|
|
A requirement typically is considered strategic if: |
revenue enhancement risk reduction access to new technology |
|
|
ABC analysis or Pareto analysis |
an analytical tool for identifying major spend areas; about ten percent of the number of separate needs account for 70 to 80% of the dollar value of the total corporate spend.) |
|
|
Capital |
Any requirement that accountants classify as capital, and, therefore, an investment, becomes a capital item. Equipment, IT, real estate, and construction are included in this category. |
|
|
Commercial equivalents |
Translating organizational requirements into a product or service that potential suppliers can understand. |
|
|
Description by brand or trade name |
indicates a reliance on the integrity and the reputation of the supplier. |
|
|
equal |
When used in an RFx, the buyer is shifting responsibility for establishing equality or superiority to the bidder without the buyer developing detailed specifications. |
|
|
Raw materials |
Any material in its natural or original state before processing or manufacture; for example iron ore, coke, agricultural products. |
|
|
Resale/resellers |
retailers, wholesalers, distributors, agents, brokers and traders. |
|
|
Semi-processed materials |
Any material that has been partially processed; for example, cotton is a raw material that can be woven into cloth (semi-processed) and then made into garments (a finished product). |
|
|
Simplification |
a reduction in the number of sizes and designs in an attempt to determine the most important ones to concentrate production or use on wherever possible. |
|
|
Standardization |
means agreement on definite sizes, design, quality, and the like. |
|
|
"C" item in ABC analysis are: |
Often managed by the supplier |
|
|
CPFR stands for: |
Collaborative Planning, Forecasting and Replenishment |
|
|
When a carpet manufacturer predicts carpet sales by sung building permits issued, mortgage rates, apartment vacancy rates, and so on, this is an example of: |
a causal model |
|
|
Capacity requirements planning (CRP): |
performs for manufacturing resources what MRP does for materials |
|
|
Anticipation inventories are carried: |
to cover a well-defined future need |
|
|
JIT requires |
frequent deliveries of relatively small quantities |
|
|
A material requirements planning (MRP) system: |
requires explosion of the bill of material as the basis of planning. |
|
|
The following cost is not a carrying, holding, or possession cost: |
The purchase cost of the item |
|
|
A reduction in set-up costs and time impacts: |
cycle inventories |
|
|
MRP |
A material requirements planning system |
|
|
CRP |
Capacity requirements planning |
