Topic 4 - Procurement management (follow Slides)

What is the definition of procurement?

• The process of marketing goods

• The process of manufacturing goods

• The process of selling goods and services

• The process of managing a broad range of processes related to a company's need to procure goods and services

How are items and services procured classified based on their relative importance?

• Generics, commodities, distinctives, and criticals

• Basic, intermediate, advanced, and premium

• Low-risk, high-risk, low-value, and high-value

• Standard, customized, unique, and rare

What is the appropriate supply chain strategy for functional products according to Fisher's classification?

• Lean

• Hybrid

• Pull

• Push

What is the main focus of procurement strategies for innovative products?

• Reducing lead times and supply flexibility

• Minimizing total landed cost

• Sourcing from low-cost countries

• Maximizing efficiency and cost reduction

What is the purpose of Total Cost Ownership (TCO) in procurement?

• Estimating the production cost of a product

• Determining the market demand for a product

• Calculating the total profit margin of a product

• Identifying cost considerations beyond unit price and transport

What are the types of expediting in the procurement process?

• Basic expediting, advanced expediting, premium expediting

• Fast expediting, slow expediting, immediate expediting

• Exception expediting, routine status check, advanced status check

• Standard expediting, urgent expediting, emergency expediting

What is the role of procurement in the value chain according to Porter (1985)?

• Supply Chain Management

• Logistics Planning

• Total Cost Ownership

• Inventory Control

What are the major bottlenecks and problems in the procurement process?

• Supplier or brand specification, inadequate supplier selection, insufficient contracting experience

• Excessive supplier selection, lack of specifications, over-contracting

• Inadequate budgeting, delayed delivery, lack of communication

• Poor quality control, lack of inventory, excessive paperwork

What is the first step in the procurement process related to purchase order specification?

• Specifying functional and technical specifications

• Negotiating prices and terms of delivery

• Selecting suppliers based on bids

• Placing the purchase order

What is the purpose of the purchase contract in the procurement process?

• Defining prices, terms of delivery, payment, and other arrangements

• Selecting suppliers based on bids

• Placing the purchase order

• Inspecting the delivered shipments