1. Whenever a department needs an item, it is officially brought to the notice of the purchasing department by filing a purchase requisition from. The next step is
A. Exact quantity of material to be purchased and its specification is decided
B. Prepare a list of suppliers who deal with the business of the articles to be purchasing and are reliable
C. Pen the quotations at prescribed time on the prescribed date
D. Prepare a comparative statement of the, terms and conditions mentioned in the quotation and then analyze them.
2. The important functions of purchase departments are __________________________.
A. preparation of purchasing budget
B. track pending purchase order
C. issue and follow up purchase order
D. all of these
3. Which of the following is/are the assumptions of Economic order quantity (EOQ)?
A. There are no bulk purchase discounts for making orders in large sizes. All units purchased for each item of material cost the same unit price.
B. The order lead time (the time between placing an order and receiving delivery from the supplier) is constant and known.
C. Annual demand and consumption for the inventory item is constant throughout the year.
D. All of the above
4. The order quantity or purchase quantity that minimize the total annual cost of ordering the item plus holding it in store is called the economic order quantity or EOQ.
A. True
B. False
5. The EOQ can be calculated using a:
A. Table
B. Graph
C. Formula
D. All of the above
6. Supply lead time. This is the period of time between placing a new order with a supplier and receiving the delivery of the purchased items. The length of this supply lead time might be uncertain and might be several days, weeks or even months.
A. The above is statement is correct
B. The above statement is incorrect
7. Reorder level is the level of inventory at which a new order for the item should be placed with the supplier.
A. True
B. False
8. There are four methods of government procurement. Which is not one of these methods?
A. Assistance
B. Sealed bidding
C. Competitive proposals
D. Acquisition
9. Which is not a consideration in a make or buy decision?
A. Cost factors
B. Sales volume
C. Existence of sufficient administrative / technical personnel
D. Political and social factors with the organization
10. The Bid Evaluation process is characterized by all of the following activities except?
A. Evaluation of suppliers financial resources
B. Ability to comply with technical specifications
C. Delivery schedule and cost factors
D. Competitors method of sourcing
11. __________ is a written order directing the contractor to make changes according to the provisions of the contract documents.
A. Change order / purchase order amendment
B. Contract order modifications
C. Contractor claim
D. Owner directive
