Purchasing & Procurement Flashcards
7 cards from real CLT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Purchasing & Procurement flashcards as text
What is a Purchase Order (PO) in logistics procurement?
Answer: A legally binding document issued by a buyer to authorize a purchase from a supplier
A Purchase Order is a legally binding document issued by a buyer to a supplier that authorizes the purchase of specific goods or services at agreed-upon terms.
What does 'lead time' refer to in procurement?
Answer: The time between placing an order and receiving the goods
Lead time is the elapsed time from when a purchase order is placed until the goods are received and available for use.
Which document typically initiates the formal purchasing process within an organization?
Answer: Purchase Requisition
A Purchase Requisition is an internal document that formally requests the purchasing department to procure specific goods or services.
What is 'Total Cost of Ownership' (TCO) in the context of procurement?
Answer: All costs associated with acquiring, using, and maintaining a product over its lifecycle
TCO includes the initial purchase price plus all related costs such as shipping, installation, training, maintenance, and disposal over the product's lifecycle.
What is the primary purpose of a vendor evaluation in procurement?
Answer: To assess supplier performance against defined criteria such as quality, delivery, and cost
Vendor evaluations assess supplier performance across criteria like quality, on-time delivery, pricing, and responsiveness to ensure they meet company standards.
What is competitive bidding in the procurement process?
Answer: A process where multiple suppliers submit price quotes for the same goods or services
Competitive bidding solicits proposals or quotes from multiple suppliers to ensure the buyer receives the best value for goods or services.
What is a blanket purchase order?
Answer: A long-term contract allowing multiple deliveries at pre-negotiated prices over a set period
A blanket purchase order establishes a long-term agreement with a supplier for recurring purchases at fixed terms, allowing individual releases (deliveries) as needed.