MRP Procurement & Vendor Management 3

Question 1

What is the three-way match process in accounts payable and procurement?

Accepted Answer

Matching the purchase order, goods receipt, and supplier invoice before approving payment

Answer

Matching supplier name, contact, and address records

Answer

Matching planned orders, firm orders, and actual receipts in MRP

Answer

Matching quality inspection results to three specification documents

Question 2

In supplier relationship management, what distinguishes a strategic supplier from a transactional supplier?

Accepted Answer

Strategic suppliers are critical to operations and warrant long-term collaboration and development

Answer

Strategic suppliers provide lower-priced commodity items

Answer

Strategic suppliers deliver more frequently

Answer

Strategic suppliers require shorter purchase lead times

Question 3

Which term describes a purchasing technique where orders are placed frequently in small quantities to synchronize supply closely with MRP requirements?

Accepted Answer

Lot-for-lot ordering

Answer

Economic order quantity (EOQ)

Answer

Period order quantity

Answer

Fixed order quantity

Question 4

What is a supplier development program designed to accomplish?

Accepted Answer

Work collaboratively with suppliers to improve their capabilities, quality, and delivery performance

Answer

Replace underperforming suppliers with new ones immediately

Answer

Reduce the number of approved suppliers on the vendor list

Answer

Transfer manufacturing processes to the supplier

Question 5

When MRP generates a 'reschedule out' action message for an existing purchase order, what should the procurement team do?

Accepted Answer

Request the supplier delay delivery to a later date aligned with the new MRP need date

Answer

Cancel the purchase order entirely

Answer

Increase the order quantity

Answer

Move the order to a different supplier

Question 6

What role does supplier lead time play when calculating MRP planned order release dates?

Accepted Answer

Lead time is subtracted from the need date to determine when to release the purchase order

Answer

Lead time is added to safety stock to set the reorder point

Answer

Lead time determines the order quantity

Answer

Lead time sets the planning horizon length

Question 7

Which procurement document is used internally to request that the purchasing department buy a specific item before a purchase order is created?

Accepted Answer

Purchase requisition

Answer

Purchase order

Answer

Material transfer order

Answer

Receiving report