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SCMl 300l Examl 1l ( l 2026/l 2027l Update)l Review l l l Questionsl &l Answersl l Gradel A
Q:l Purchasingl Processl Steps
Answer:
1.l Requisition 2.l Supplierl Selection 3.l Placel Order 4.l Trackl Order 5.l Receivel Order
Q:l cyclel stock
Answer:
inventoryl usedl tol accommodatel normall demandl orl inventoryl thatl variesl directlyl withl lotl size
Q:l whenl tol usel EOQ
Answer:
Whenl thel orderl costl isl lessl thanl carryingl cost
Q:l Highl Inventoryl Pros
Answer:
higherl levelsl ofl customerl servicel (havingl inventoryl addressesl immediatel demand),l quantityl discountsl possible,l fewerl ordersl willl bel placed,l greaterl securityl againstl unexpectedl demandl variability *Consl forl Lowl Inventory 1 / 3
Q:l Lowl Inventoryl Pros
Answer:
lessl storagel spacel requiredl (loweringl holdingl cost),l lowerl chancel ofl invl shrinkage,l lessl materialsl handling,l lessl moneyl investedl inl inventory *Consl forl Highl Inventory
Q:l Ifl holdingl costl tool low
Answer:
orderl more
Q:l ifl holdingl costl tool high
Answer:
orderl less
Q:l Selectingl al Supplier-l companyl asl customer
Answer:
1.l cost/price 2.l quality 3.l time 4.l flexibility
Q:l Whenl tol Makel yourl product
Answer:
Proprietaryl technology Nol competentl supplier Betterl qualityl control Idlel Capacity 2 / 3
Controll -l leadl times,l costs,l etc.
Q:l Whenl tol buyl yourl product
Answer:
Insufficientl capacity Lackl ofl expertise-l they'lll makel itl betterl Quality
Q:l Centralizedl purchasing
Answer:
havel al centralizedl purchasingl departmentl forl thel entirel organization Volume Avoidl Duplication Specialization Consolidatedl shipping Commonl supplyl base
Q:l decentralizedl purchasing
Answer:
eachl departmentl ofl thel organizationl hasl theirl ownl purchasingl departmentl Closerl knowledgel ofl requirements Locall sourcingl -l Relationships,l leadl times,l flexibility Lessl bureaucracy
Q:l Materiall Requisitionl (MR)
Answer:
documentl usedl tol initiatel thel purchasingl process
Q:l Requestl forl Quotationl (RFQ)
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