CIPS L4M1 (Management) SCOPE AND INFLUENCE OF PROCUREMENT AND SUPPLY COMPLETE STUDY GUIDE QUESTIONS AND ANSWERS.

1. What is Procurement? Procurement is a STRATEGIC function of a
business obtains something Tangible as goods
or Intangible as services. Include Purchasing Inventory, Logistics, Supply, Waste Management
Quality, Cost, Added Value
2. What is Purchasing? Is the ACT of physically ordering and buying
something.
3. What is Supply? Is the INFRASTRUCTURE which ensures that
products and services get from supplier to the
customer.
4. What is inventory? the stock of goods, materials or products
5. What is a stock? Asset available in the warehouse
6. What is asset? Value of everything an organization owns
7. Fixed cost Costs do not change (Salaries, Insurance, Rent)
8. Variable Cost Costs do change as they are linked to the business (Raw Material, Extra hours)
9. Directly Cost (Direct Procurement)
10. Indirectly Cost (Indirect
Procurement)
11. Primary Sector of the
Economy
12. Secondary sector of the
Economy
13. Finished goods