Quiz 2014 Nov 18 -with answer

Brief Answers:
1．When does a company need purchasing strategy?
The demand of purchasing strategy in a corporate is depend on
1）importance of purchasing in strategy
Value adding of products, importance of materials purchasing and the degree that purchasing cost influences the profit.
2）Complexity of the supplier market
Depend on the degree of shortage of provision, update speed of technologies and materials, restriction of import, logistics cost and complexity, risk in supply chain.
2. Give two examples of products which belong to small-value purchases; please allocate several effectiveness improving tools for these small items.
The examples include, for example the cleaning tools( rubbish bag),
Office stationary (stapler, ruler) and so on.
1.Purchasing cards
2.Telephone order
3.Petty (小额，零碎)cash purchases
4.Standing order（固定订单）
5.Self billing(convenient for buyers and suppliers)
6.Blank check order（suppliers fill in it after deliver）空白支票订购
7. Stockless buying , the supplier agrees to maintain stocks of specified items. 3. The Purchasing agenda is changing to focusing on balancing cost, risk and Value. Please summarize what approaches have been used to manage risk and what methods have been employed to cut down the purchasing cost?
For risk management:
Single vs multiple supplier
Performance-based contracting
Corporate social responsibility
Sustainable purchasing
Supplier auditing
Supplier quality assurance
Supplier financial position
Intellectual property protection
Purchasing cost reduction:
Supply base reduction
Production standardization
Global sourcing
Outsourcing and offshoring
Electronica auctions
Contract management
4. what is a ‘buyer inertia’ ? Does the Demand likely to be less elastic or more elastic under a buyer inertia?
There is a ‘buyer inertia’—that is, buyers are slow to change their buying habits and search for alternative source of lower prices. The Demand is likely to be less elastic under a buyer inertia.
5. What factors or dimensions of quality you have to consider when making your decision to choose products? Please take two similar products for example to discuss.
1. Performance(性能)-- the product’s operating characteristics；
2. Reliability（可靠性）-- the possibility of a product surviving for a specified period of time under stated condition of use.
3. Serviceability（维修性）--the speed, accessibility and ease of repairing the item or having it repaired.
4. Conformance（一致性）--the degree that the delivered product matches the standard of it.
5. Durability（耐久性）-- measure the projected use available from the product over its intended operating cycle before it deteriorates.
6. Features(特色性)--the secondary characteristics that supplement the product’s basic functioning。

7. Aesthetics（美学性）-- personal judgments about how a product looks, feels, sounds, tastes, or smells.
8. Perceived quality（概念性质量）-- closely identified with the reputation of
the producer.
6.When purchasing for Company office,
PLS Distinguish and Give 3 examples of produc ts which belong to ABC Class respectively.。