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Question 1

What does the term ‘function’ emphasize in the context of purchasing?

Answer 1

The activities rather than the people involved in performing these activities

According to Wijnstra (1997)

Question 2

What are some responsibilities inherent in the execution of the purchasing function?

Answer 2

• Setting goals
• Developing systems for performance measurement
• Assuring sufficient material and human resources
• Formulating ethical rules for purchasers

Question 3

What does the term ‘function’ refer to in a business context?

Answer 3

A group of related activities that form a meaningful subdivision of the management of the enterprise

Question 4

What activities are included in the purchasing function?

Answer 4

• Specifying what should be purchased
• Selection of one or more adequate suppliers
• Establishing a contract with the supplier(s)
• Actually ordering the items or services
• Monitoring the delivery of the items or services ordered
• Follow-up on the delivery

Question 5

What must purchasing establish to be successful?

Answer 5

Clear and measurable objectives

Question 6

What is the first overarching objective of the purchasing function?

Answer 6

Assure economic supply through the procurement of goods, supplies, and services

Question 7

What is the second overarching objective of the purchasing function?

Answer 7

Contribute to profits by efficiently controlling the total cost to the operation

Question 8

True or False: The first purchasing objective focuses only on cost control.

Answer 8

False

Question 9

Fill in the blank: Purchasing must establish clear and measurable _______ to maximize its contribution to the company’s overall performance.

Answer 9

[objectives]

Question 10

What differentiates an average purchasing organization from a world-class purchasing organization?

Answer 10

Smart handling of cost control after economic supply is assured

Question 11

What are the two overarching objectives of purchasing?

Answer 11

1. Assure economic supply through the procurement of goods, supplies, and services.
2. Contribute to profits by efficiently controlling the total cost to the operation.

Question 12

Why is the second objective of purchasing important?

Answer 12

It defines the difference between an average and a world-class purchasing organization.

Question 13

What is a specific purchasing objective related to quality?

Answer 13

To get the best buy-suitable quality at minimum cost.

Question 14

Fill in the blank: Purchasing aims to pay reasonably low prices by negotiating and executing all company _______.

Answer 14

commitments.

Question 15

What is a key goal regarding supplier relationships?

Answer 15

To develop satisfactory sources of supply and maintain good relationships with them.

Question 16

What is one way to secure optimal supplier performance?

Answer 16

By seeking process improvements across boundaries between trading partners.

Question 17

What is a specific purchasing objective concerning inventory?

Answer 17

To keep inventories throughout the supply chain as low as is consistent with company needs.

Question 18

What should purchasing continually aim to reduce?

Answer 18

Total cost of purchases.

Question 19

What is the goal regarding acquisition costs?

Answer 19

To keep acquisition costs at the minimum compatible with optimal performance.

Question 20

According to Porter’s value chain analysis, what role does procurement play?

Answer 20

A support activity that contributes to the competitive advantage of a business unit.

Question 21

What types of processes does the purchasing function perform to add value?

Answer 21

Market and value analyses, sourcing, negotiation, etc.

Question 22

What output does effective purchasing provide to the organization?

Answer 22

Quality, services, materials, etc.

Question 23

True or False: The purchasing function has a minor role in adding value to the organization.

Answer 23

False.

Question 24

What is a profession according to Dobler and Burt (1996)?

Answer 24

A calling requiring specialized knowledge, long preparation, high standards of achievement, and commitment to public service.

This definition emphasizes the importance of education, training, and ethical standards in a profession.

Question 25

List the essential features of a profession according to Millerson (1964).

Answer 25

* A skill based on theoretical knowledge * A skill requiring training and education * Demonstration of competence by passing a test * Maintenance of integrity by adherence to a code of conduct * Service provided for the public good * Organized profession ## Footnote These features highlight the structured nature of professions and their societal roles.

Question 26

What challenges do procurement professionals face?

Answer 26

Managing complex challenges related to efficiency and effectiveness. ## Footnote Procurement professionals must develop strategies to navigate these challenges.

Question 27

Why is there an urgent need for educating procurement professionals?

Answer 27

To equip them with new and higher-level skills. ## Footnote This urgency is driven by the evolving landscape of procurement and the need for innovation.

Question 28

Define a skill as per Peterson and Van Fleet (2004).

Answer 28

The ability to perform a specific behavioral task or cognitive process related to a particular task. ## Footnote This definition underscores the importance of both practical and cognitive abilities in professional contexts.

Question 29

What difficulties are reported by Lan, Riley, and Cayer (2005) regarding procurement professionals?

Answer 29

Finding, hiring, and retaining dedicated, energetic, and ethical employees with special skills is always hard. ## Footnote This difficulty emphasizes the competitive nature of the job market in procurement.

Question 30

True or False: Professionalism is a key mechanism for institutional change.

Answer 30

True. ## Footnote Professionalism plays a significant role in shaping and influencing institutional practices.

Question 31

What is the focus for managers in both public and private sectors regarding procurement?

Answer 31

Focusing on people, the knowledge, skills, and capabilities needed for procurement innovation. ## Footnote This focus is essential for achieving required levels of performance in procurement.

Question 32

Fill in the blank: A profession is characterized by maintaining __________ by adherence to a code of conduct.

Answer 32

integrity. ## Footnote This characteristic is crucial for upholding trust and ethical standards in any profession.

Question 33

What is one key role of procurement professionals?

Answer 33

Championing efficiency and effectiveness in procurement processes. ## Footnote This role is integral to ensuring that procurement contributes positively to organizational goals.