OMST Purchasing, Inventory, and Vendor Management

Question 1

What is the usual correct sequence in a basic purchasing cycle?

Accepted Answer

Purchase requisition, purchase order, receipt of goods, invoice verification, payment

Answer

A request (requisition) leads to an approved purchase order. Once goods arrive they are checked against the order and the invoice before payment is made, which is the basis of a three-way match.

Question 2

What is the purpose of a purchase order (PO)?

Accepted Answer

To formally authorize a purchase and set out the items, quantities and agreed prices with a vendor

Answer

A PO is a legal document from the buyer to the vendor that authorizes a purchase and states what is being ordered, in what quantity and at what price. It also serves as a control and audit record.

Question 3

When goods arrive, what should the office manager compare them against to confirm the order is correct?

Accepted Answer

The purchase order and the packing slip

Answer

Received goods should be checked against the purchase order and the packing slip for item, quantity and condition. The invoice is then matched to those before payment is approved.

Question 4

An office wants to avoid running out of printer paper while also avoiding overstock. Which inventory practice helps most?

Accepted Answer

Setting a reorder point and a minimum stock level based on usage and delivery lead time

Answer

A reorder point set from average usage and vendor lead time triggers a new order before stock runs out, which balances availability against storage and carrying costs.

Question 5

Which is generally the best approach when selecting a vendor for a significant office purchase?

Accepted Answer

Obtain several competitive quotes and compare price, quality, reliability and terms

Answer

Comparing multiple quotes against total value, including quality, delivery reliability, warranty and payment terms, supports a well-informed decision. The lowest price may not provide the best value.

OMST - Office Management Specialist Test Practice Test

OMST - Office Management Specialist Test Practice Test

OMST Purchasing, Inventory, and Vendor Management