Purchasing and Supply Management Final Exams Questions and Answers 2024.
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Course
Purchasing and Supply Management
Institution
Purchasing And Supply Management
Purchasing and Supply Management Final Exams Questions and Answers 2024.
What is transactional cost?
refers to all cost included to make a transaction between two parties.
describe RFI, RFQ and RFP
A Request for Information (RFI) is used when you think you know what you want but need more...
Purchasing and Supply Management Final Exams 2024
What is transactional cost? - answer refers to all cost included to make a transaction between two parties.
describe RFI, RFQ and RFP - answer A Request for Information (RFI) is used when you think you know what you want but need more information from the vendors. It will typically be followed by an RFQ or RFP.
A Request for Quote (RFQ) is commonly used when you know what you want but need information on how vendors would meet your requirements and/or how much it will cost. A Request for Proposal (RFP) is used when you know you have a problem but don't know how you want to solve it. This is the most formal of the "Request for" processes and has strict procurement rules for content, timeline and vendor responses. The appendices in the Guide to Successful Software Acquisition provide templates for this approach.
What are the key components of transactional cost? - answer CCC cost of Contacting, contracting Controlling.
What is the password to this set - answer Accure
why is it important for purchasing managers to consider the transactional cost? - answer * better understanding of the total cost
* easier to compare suppliers.
* hard to identify CCC since these cost can be spread out to other parts of the org.
* CCC can be hard to quantify *soft cost r hard to identify i.e. cost of solving problems * cost is often higher than what is visual from the start.
Why is buying services important? - answer *standing for an increasing share of companies total spend since compnaies focus on their core business more and more. * i.e. facility management, transports, HR, IT etc
*companies are transforming their business model from selling products to selling services (i.e. repair on
products etc)
*purchasing services must be treated differently than buying products/ goods
How can services be classified? - answer can be classified in serveral ways. * what sort of service category each belong to
*how much they cost
*where they are bough (geographically, LF) One good way is to classify them by the importance for internal/ external customers (axes) which has the following categories (internal customers y-axis, external x-axis)
instrumental service semi-manufactured service
consumption service component services
Why is it important to classify services? (for purchasing managers) - answer *classification helps Purchasing managers to identify which services that are crucial to spend effort on.
* helps to allocate personell for different purchasing tasks
*helps identify how the total purchasing spend is used
*identifies which services that have a high volume and which are most costly. What happens if services are not classified? - answer *inneficient purchasing organisation * poor customer service
* Focusing on the wrong things
What Characterises a service compared to goods? - answer * intangible * heterougenous *cant be stored
* are created, distributed and consumed at the same time
* hard to demonstrate and specify.
What does it mean for specification, that services are different compared to goods? - answer *Serivice are hard to specify since it doesnt have a physical nature. *Since you cant touch it, it is hard to write a specification. *quality is more subjective for services than for products
How can services be specified? - answer 1. Input specification- u specify what the service provider should use for input, but you dont know the outcome
2. Throughput specification- u specify how the service is performed, u dont say what to use and what to get in the end. 3. output- u specify what u want to get in the end, not how it is done or by what means. 4. outcome- u specify what the economic outcome should be of the output should be.
What does it mean for selection that services are different compared to goods? - answer *hard to compare to different service providers and make a rational decision
What does it mean for contracting that services are different compared to goods? - answer *taking into consideration the specification part, it is hard to contract service provider to get the most beneficial outcome. *should the contract be behavioural based or performance based?
What is the difference between behavioural based and performance based contracts? - answer - Performance based contracts are a contracting mechanism that allows the customer to pay primarily when the firm has delivered outcome rather then merely activities and tasks.
- Behavioral based contracts specify how the agent should act in order to deliver the work it is contracted for.
Explain the following concepts and discuss in brief their usefulness to purchasing professionals. illustrate
key Points with examples:
Involvement in Buyer supplier relationship - answer *relates to how much effort the pruchasing department spends on a relationship with a supplier
*adaption * frequency of contact
* how long-term the relationship is
*how dependent is the buyer on the supplier
What are the consequences of having too little or too much effort spent on supplier relationships management? - answer *too little involvement: - a higher cost for purchasing - receiving a poorer service
-lower prioritizing from supplier
Too much involvement: -costly in terms of keeping up the good relation
-time spent on the relationship
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