MRP Procurement & Vendor Management 2

Question 1

Which supplier evaluation criterion directly affects the accuracy of MRP's planned order dates?

Accepted Answer

Supplier lead time reliability

Answer

Supplier financial stability

Answer

Supplier geographic location

Answer

Supplier workforce size

Question 2

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?

Accepted Answer

Convert the planned order to a firm planned order or purchase requisition

Answer

Immediately ship the component to the shop floor

Answer

Adjust the master production schedule

Answer

Update safety stock levels

Question 3

What is the purpose of a supplier scorecard in vendor management?

Accepted Answer

To systematically measure and communicate supplier performance across key metrics

Answer

To replace the need for purchase orders

Answer

To determine raw material pricing indexes

Answer

To manage internal manufacturing quality

Question 4

Which concept describes the total cost of acquiring and using a purchased item, including price, transportation, quality, and administrative costs?

Accepted Answer

Total cost of ownership (TCO)

Answer

Unit cost

Answer

Standard cost

Answer

Landed cost

Question 5

In MRP procurement, what does 'order quantity' refer to for a purchased item?

Accepted Answer

The amount authorized in a single purchase order based on lot-sizing rules

Answer

The safety stock level for the item

Answer

The annual demand forecast

Answer

The reorder point

Question 6

What does 'expediting' mean in the context of MRP procurement?

Accepted Answer

Accelerating a late or critical purchase order to meet a revised need date

Answer

Canceling a purchase order due to demand reduction

Answer

Negotiating lower prices on high-volume orders

Answer

Returning non-conforming goods to a supplier

Question 7

Which document proves that received goods match what was ordered and is required before payment is authorized?

Accepted Answer

Goods receipt (receiving report)

Answer

Purchase requisition

Answer

Bill of lading

Answer

Invoice