Chapter 4 Assignment
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Dec 6, 2023
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PURCHASING AND SUPPLY MANAGEMENT 16
th
EDITION - JOHNSON
Chapter 4 Assignment
1.
Describe how purchasing becomes aware of purchase requirements? Describe the types of
Requisitions.
In purchasing, it is important to have an in-depth understanding of the customer’s needs
which is derived from an accurate description of the need. Requisitions are the means of
communicating this description inside the organization. The following are descriptions of
types of requisitions commonly used:
Standard Requisitions – contain information pertaining to the ordering department, the
specific service or material needed, and any shipment or delivery caveat’s, as well as an
authorized signature. Requisitioner may indicate a suggested supplier.
Traveling Requisitions
– contain information for ordering recurring or standardized items.
Typically, the supplier for this type of requisition is already known.
Bill of Materials
– comprehensive list of all items required to make one unit. Pricing and
suppliers are typically available.
2.
When would you use an RFI? RFQ? RFP? Why?
A request for information (RFI) is used to collect information from suppliers about availability
of needed services and materials. It is not a request to submit bids.
A request for quotation (RFQ) is used as a way to compare pricing for multiple suppliers.
Ultimately, a supplier is selected based on the RFQ’s submitted.
A request for proposals (RFP) is a comprehensive response or solution to a detailed request
for necessary services or materials. 3.
Why is it important to align purchases with accounts payable? Is it advisable to withhold
payments of an invoice? When and why?
Aligning purchases with accounts payable removes a nonvalue-adding task from supply and
allows an opportunity for checks and balances of the order process, such as correct pricing
and quantities, matching invoices to orders, and avoiding duplicate invoices.
4.
Describe the process that can help with the purchase of low-dollar-value, high-volume goods
and services. A corporate credit card, or procurement card, can be a valuable tool for the purchase of low-
dollar-value or high-volume materials and services used within an organization. Typically,
pre-set spending limits along with a list of approved suppliers is how this program is
managed.
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