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- 1. Multiple Choice
The terms 'purchasing' and 'procurement' are often used synonymously but which of the following statements provides a more refined distinction?
Purchasing has a broader meaning than procurement
Procurement has a broader meaning than purchasing
Procurement is broadly equivalent to purchasing
None of the above
- 2. Multiple Choice
E-procurement is not new and there have been many attempts to automate the process of procurement for the potential buyer by using:
Chip and pin technology
Electronic procurement systems
Radio frequency identification microchip
Electronic procurement
- 3. Multiple Choice
There are benefits and practical considerations to take into account when introducing e-procurement. There are also different types or applications. Which one of these enables the purchasing company to buy goods and services that have the lowest price or combination of lowest price and other conditions through Internet technology?
E-informing
E-sourcing
E-reverse auction
E-tendering
- 4. Multiple Choice
A recent study in 2010 reviewed the business benefits of adopting e-procurement and concluded that there were five key drivers. Which one is FALSE though?
Cost - improved through buyer leverage
Process - reduced cycle time
Control - lower levels of compliance and need for budgetary control
Supplier management - reduced supplier numbers
- 5. Multiple Choice
To assess any new initiative, some evaluative process needs to take place. Riggins and Mitra recently created an evaluative framework that can be used for evaluating e-supply chain management as well as e-procurement. Some of the main dimensions are below but which one would contain the benefit of vendor-managed inventory?
Development
Production
Inbound
Planning
Outbound
- 6. Multiple Choice
In estimating e-procurement costs and savings, a simple equation is followed. To calculate cost savings from e-procurement the following calculation is used: Savings = No. of requisitions × (New cost - Original cost)
True
False
- 7. Multiple Choice
Adopting e-procurement does not come without risks or barriers. Some of these are specific to e-procurement while others are more general limitations to e-business adoption. Which of the following is not a specific e-procurement issue?
Creation of catalogues can be a long and costly process
Positive negative perceptions from suppliers
Cost of implementation and managing change
Positive negative perceptions from suppliers
- 8. Multiple Choice
There are different information systems which can be used to show the processing steps that takes place within a fulfillment cycle. Which sequence is most typical of the procurement process?
Approver to originator to buyer to supplier
Supplier to originator to approver to buyer
Originator to buyer to approver to supplier
Originator to approver to buyer to supplier
None of the above
- 9. Multiple Choice
Electronic B2B marketplaces can also be known as exchanges and hubs and they all refer to virtual locations with facilities to enable trading between buyers and sellers. Recent research by Johnson (2010) examined reasons for the limited adoption of e-marketplaces. The most significant included:
Difficulties to create a paradigm shift in e-business
Lack of faith in an integrated e-marketplace
Benefits, risks and trust in partners
All of the other answers apply
- 10. Multiple Choice
The electronic integration and management of all procurement activities including purchase request, authorization, ordering, delivery and payment between a purchaser and supplier is known as:
E-procurement process
E-procurement system
E-procurement
All of the above
- 11. Multiple Choice
E-procurement aims to improve performance of what is known as the 'five rights of purchasing'. One aim of e-procurement is increasing savings by sourcing items:
Of the right quantity
At the right price
Of the right quality
From the right source
- 12. Multiple Choice
What is the term used to describe where supply chain partners manage the replenishment of parts or items for sale? They do this through the sharing of information on variations in demand and stock levels for goods used for manufacture or sale.
E-procurement drivers
E-business value and stock level grid
Vendor-managed inventory
Efficient customer response
- 13. Multiple Choice
There are barriers and risks involved in adopting e-procurement. Which of the following is NOT regarded as a risk or barrier?
Possible positive perception from suppliers
Negotiated procurement benefits may be shared with other exchange users who may be competitors
Creation and cost of catalogues
Competition issues
- 14. Multiple Choice
In future, some suggest that the task of searching for suppliers and products may be taken over by a program which automatically gathers information from the Internet:
Electronic B2B marketplaces
Metamediaries
Software intelligent agents
Spider search engines
- 15. Multiple Choice
Of the following, which is an e-procurement benefit related to budgetary control?
Correcting errors is traditionally a major part of a buyer's workload
Reduced purchase cycle
Rules to limit spending and improved reporting facilities
Enabling them to concentrate on strategic purchasing issues
- 16. Multiple Choice
Which of the following describes the stock control system element of an e-procurement system?
Re-ordering is automated when the number in stock falls below re-order thresholds
Staff in the buying department to enter an order which can then be used by accounting staff to make payment when the invoice arrives
Integrates the entry of the order by the originator, approval by manager and placement by buyer
Possible to integrate all e-procurement functionality and may also include integration with suppliers' systems
- 17. Multiple Choice
Negotiated contracts with regular suppliers typically in long-term relationships is an example of:
Systematic sourcing
MRO sourcing
Spot sourcing
E-procurement
- 18. Multiple Choice
For B2B transactions involved with e-procurement, the merchant site should facilitate:
Modified rebuys
Straight rebuys
Initial purchases
Partially complete orders
All of the above
- 19. Multiple Choice
Another aim of e-procurement is increased choice of supplier leading to sourcing items:
Delivered at the right time
Of the right quantity
From the right source
At the right price
- 20. Multiple Choice
Security is a consistent and growing problem for e-procurement and procurement solutions.
True
False
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