Procurement Management MIDTERM 1 Questions for repetition 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. Why do we say that purchasing is a process? Name at least 3 subprocesses of purchasing! Can we tell that purchasing is a profession? Why? What are 5R of purchasing? And why do we optimize them? Define purchasing! Define procurement! Describe how purchasing and procurement differ! What are organizational buyers? What does someone mean if he/she tells that „purchasing is external resource management“? Name evolution phases of procurement by Reck and Long? Choose and explain one of them! Describe the difference between passive and active procurement! Name evolution phases of procurement by Stannack and Jones? Choose and explain one of them! Why and when the purchasing/procurement important for overall business strategy? What does it mean: „Procurement management is nowadays more about effectiveness than efficiency?“ Name at least 3 cases when the negotiation power of the supplier is high! Name at least 3 cases when the negotiation power of the buyer is high! What do we need to check out when evaluating ideas in strategic planning process? What influences the choice of a purchasing strategy? What are advantages of centralized procurement? What are advantages of decentralized procurement? How can we organize procurement function? Describe organization of procurement by end product and give one example! Describe organization of procurement by category and give one example! Describe organization of procurement by value classification! Describe organization of procurement by profit centre! What is Pareto principle in procurement? What is ABC classification of materials and why do we use it procurement strategy planning? When the procurement function will be at higher position within the organization scheme? Define a supply chain! What is primary supply chain? What is support supply chain? What are MROs? How a supply chain is linked together? What flows do we have in a supply chain? What activities are adding costs and consuming time within supply chains? Explain your answer. 35. 36. 37. 38. Why do we say that „Purchasing professionals are the architects of the value stream“? Give an example of convergence in supply chain! Give an example of divergence in supply chain! Comment the sentence: „Not supply chains, but supply networks are of a great interest in modern economy!“ 39. Describe the difference between competitive and partnering supply chain! 40. Describe the difference between trading and integrated supply chain! Please note: These are not all questions for your exam. These questions are given for repetition only!!!