MRP Procurement & Vendor Management

Question 1

In MRP-driven procurement, what document formally authorizes a supplier to deliver materials at a specified time and quantity?

Accepted Answer

Purchase order

Answer

Purchase requisition

Answer

Receiving report

Answer

Material release

Question 2

Which procurement strategy involves establishing long-term agreements with suppliers that specify pricing and terms but release individual shipments based on MRP signals?

Accepted Answer

Blanket purchase order

Answer

Spot buying

Answer

Just-in-time purchasing

Answer

Consignment stocking

Question 3

What is the primary purpose of a Vendor Managed Inventory (VMI) arrangement in an MRP environment?

Accepted Answer

Allow the supplier to monitor stock levels and replenish without separate purchase orders

Answer

Transfer inventory ownership permanently to the vendor

Answer

Eliminate the need for safety stock

Answer

Replace MRP with supplier scheduling systems

Question 4

When evaluating suppliers for MRP integration, which metric measures the percentage of orders delivered on or before the required date?

Accepted Answer

On-time delivery rate

Answer

Fill rate

Answer

Order cycle time

Answer

Defect rate

Question 5

In MRP, what term describes the time between issuing a purchase order and receiving the material into stock?

Accepted Answer

Purchase lead time

Answer

Manufacturing lead time

Answer

Cumulative lead time

Answer

Queue time

Question 6

Which sourcing strategy reduces supply risk by qualifying multiple suppliers for the same component?

Accepted Answer

Dual or multiple sourcing

Answer

Single sourcing

Answer

Sole sourcing

Answer

Global sourcing

Question 7

What is a Request for Quotation (RFQ) used for in procurement?

Accepted Answer

To solicit competitive pricing and terms from potential suppliers

Answer

To notify suppliers of delivery schedule changes

Answer

To authorize payment for received goods

Answer

To document non-conforming material returns