1
Nina oversees the buying of goods and services for her company. Which business department does she likely work in?
Purchasing
Which of the following is a detail that a buyer should know prior to placing an order for raw materials:
Whether the company has storage space for the raw materials
What is one way in which purchasing specialists play an important role in the success of a business?
Providing a flow of goods
What is an acceptable reason to select a supplier offering the best value versus the lowest price?
The lowest priced product is of inferior quality.
What are three types of buying/purchasing?
Buying for resale, buying for transformation, and buying for business use
Which of the following companies is most likely to purchase raw materials and components to convert into finished products:
Ford
In addition to purchasing, Sherita’s job responsibilities include developing partnerships and alliances with suppliers, watching for business threats and opportunities, and looking for ways to improve processes. Sherita is involved in
Strategic planning
If a purchasing specialist and a supplier discuss potential issues and ways to resolve them prior to making a purchase, what are the two parties doing?
Negotiating
Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah?
Wholesale
Doormats, carpeting, telephones, and cleaning chemicals are all items that an office might buy for
Business use
Which of the following is a step in the purchasing process:
Identifying needs
After a purchasing specialist has determined that s/he has selected the right supplier for a job, what do s/he and the supplier develop?
Purchase agreement
Suzette purchases sporting goods from several different manufacturers and sells the items in her shop, Suzy’s Sports. What kind of buyer is Suzette?
Retail
Why should purchasing specialists develop positive relationships with their suppliers?
To help ensure that the suppliers will follow through on their promises
What are two things that a purchasing specialist should consider when making a make-or-buy decision?
The company’s production capabilities and the cost of making the needed parts
Molly purchases raw materials for a factory that changes the shape or appearance of those materials through a process known as
Transformation
Annika, the purchasing specialist for Dottie’s Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop’s sugar from this cheaper supplier, what is likely to happen?
The profit margin for donuts will increase.
Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers’ proposed prices will be. Jaron is conducting
Competitive bidding