CIM Procurement & Purchasing Management Flashcards
6 cards from real CIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CIM Procurement & Purchasing Management flashcards as text
What is a blanket purchase order?
Answer: A long-term agreement to purchase goods at set prices over a period
A blanket purchase order is a pre-negotiated framework agreement that allows multiple delivery releases over a defined period at agreed prices and terms.
In procurement, 'lead time' refers to:
Answer: The elapsed time from placing an order until goods are received
Lead time encompasses all elapsed time from purchase order placement through supplier fulfillment and physical receipt at the buyer's facility.
The primary purpose of a Request for Quotation (RFQ) is to:
Answer: Invite suppliers to submit competitive pricing for specified goods
An RFQ is a formal solicitation document sent to potential suppliers requesting pricing, terms, and delivery details for specified items or services.
What is 'single sourcing' as a procurement strategy?
Answer: Deliberately choosing one preferred supplier to build a strategic partnership
Single sourcing is a deliberate choice to use one supplier for an item to develop deeper collaboration, volume leverage, and partnership benefits.
Total Cost of Ownership (TCO) in supplier evaluation considers:
Answer: Purchase price plus all associated lifecycle costs
TCO captures the full cost of acquiring and using goods, including price, freight, inspection, quality failures, warranty, and disposal costs.
A purchase order (PO) is best described as:
Answer: A legally binding document authorizing a supplier to deliver specified goods at agreed terms
A purchase order is a formal commercial document issued by the buyer that creates a binding contract once accepted by the supplier.