Procurement & Vendor Management Flashcards
7 cards from real MRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Procurement & Vendor Management flashcards as text
Which supplier evaluation criterion directly affects the accuracy of MRP's planned order dates?
Answer: Supplier lead time reliability
Lead time reliability determines whether actual delivery aligns with MRP's planned dates; unreliable lead times cause schedule disruptions and require safety stock adjustments.
A buyer receives an MRP planned order for 500 units of a purchased component. What is the next action in the standard MRP procurement process?
Answer: Convert the planned order to a firm planned order or purchase requisition
Planned orders must be converted to firm planned orders or purchase requisitions before a purchase order is issued; this is the standard MRP action message workflow.
What is the purpose of a supplier scorecard in vendor management?
Answer: To systematically measure and communicate supplier performance across key metrics
A supplier scorecard tracks performance metrics such as on-time delivery, quality, and responsiveness, providing objective data for supplier development and sourcing decisions.
Which concept describes the total cost of acquiring and using a purchased item, including price, transportation, quality, and administrative costs?
Answer: Total cost of ownership (TCO)
Total cost of ownership (TCO) captures all costs associated with a purchased item beyond its unit price, enabling more accurate supplier comparison and sourcing decisions.
In MRP procurement, what does 'order quantity' refer to for a purchased item?
Answer: The amount authorized in a single purchase order based on lot-sizing rules
Order quantity is the amount ordered per purchase order, determined by the lot-sizing rule (e.g., fixed order quantity, EOQ, lot-for-lot) applied to the item.
What does 'expediting' mean in the context of MRP procurement?
Answer: Accelerating a late or critical purchase order to meet a revised need date
Expediting involves actively following up with a supplier to accelerate delivery of a purchase order that is at risk of being late relative to MRP's required date.
Which document proves that received goods match what was ordered and is required before payment is authorized?
Answer: Goods receipt (receiving report)
A goods receipt or receiving report documents that the correct quantity and type of material was received, forming part of the three-way match required before invoice payment.