Tag: definition and functions of purchasing and storage department

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Multiple choice elements of business selling and distribution definition and functions of purchasing and storage department purchasing and stores product life cycle

________ is the basis for placing the purchase order for materials and supplies.

  1. Catalogs

  2. Purchase requisition

  3. Trade journals

  4. Quotations
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A purchase requisition is an internal document used to notify the purchasing department of items needed, serving as the basis for the purchase order.

Multiple choice elements of business selling and distribution definition and functions of purchasing and storage department purchasing and stores product life cycle

Buyers can exercise high bargaining power over their suppliers if _________.

  1. the volume they buy accounts for a large percentage of their suppliers' sales

  2. there are few buyers in the market

  3. they have many suppliers to choose from

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Buyers have high bargaining power when they represent a large portion of sales, when there are few buyers, or when there are many alternative suppliers available.

Multiple choice elements of business selling and distribution definition and functions of purchasing and storage department purchasing and stores product life cycle

Responsibilities that are carried by Stores Department include _____.

  1. Materials handling

  2. Storage and preservation

  3. Issue and dispatch

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The stores department is responsible for the physical management of inventory, including handling, storage, preservation, and the issuance of goods.

Multiple choice elements of business selling and distribution definition and functions of purchasing and storage department purchasing and stores product life cycle

________ is the main factor in timely execution of industrial projects.

  1. Advertising

  2. Promotion

  3. Purchasing

  4. Selling
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Purchasing is critical for ensuring that necessary materials are available on time, which is essential for the timely execution of industrial projects.

Multiple choice elements of business selling and distribution definition and functions of purchasing and storage department purchasing and stores product life cycle

The purchasing department's primary goals include(s) _________.

  1. To locate suppliers that can provide goods and services in accordance with the buyer's requirements.

  2. To buy items that meet the quality specifications of the buyer.

  3. To create a stream of deliveries into the buyer's premises that minimize the raw materials inventory investment

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The purchasing department is responsible for finding suppliers, ensuring quality, and managing inventory levels through efficient delivery schedules.

Multiple choice elements of business selling and distribution definition and functions of purchasing and storage department purchasing and stores product life cycle

Common purchasing activities include _______.

  1. receive and verify purchase requisitions

  2. search for qualified suppliers that can fulfill the buyer's needs

  3. issue purchase orders to suppliers

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Purchasing activities include the entire lifecycle from receiving requisitions and sourcing to issuing orders.