PROCUREMENT MANAGEMENT MODULE 1, JFM

MODULE 1: Purchasing Management

• Nature of Purchasing Management Purchasing & Procurement
(Local and Importation)
• Objectives of Purchasing Management • Purchasing responsibilities
• Purchasing Policies
• Buying Scenarios
• Ordering System
• Guidelines in Selecting Suppliers
• Bid Preparation and Evaluation
PURCHASING
The decision-making process by which formal organizations' establish the need for purchase products and services, and identify, evaluate
and choose among alternative brands and suppliers.
The activity of acquiring goods or services to accomplish the goals of an organization.
PURCHASING vs PROCUREMENT
● Procurement is the overarching end to end process of acquiring goods and services.
● Purchasing is a sub process of the procurement that deals with the action of buying.
● Procurement strategy is part of the procurement process but not of the purchasing process, while PO placement is part
of the purchasing process and the procurement process.
● Procurement process takes into account factors such as the cost over the life of the good or service, and the quality
necessary to meet users' requirements.
● Purchasing refers to the specific activity of committing expenditure and which tends to focus on issues of price rather
than of value.Simple definition: Purchasing is transactional (I will buy x for £y).
● Procurement encompasses Purchasing and everything else before and after the purchase.
● Purchasing is on parts of procurement which covers much more work leading to and also after the order has been placed.
STRATEGIC VS TRANSACTIONAL
LOCAL (Is buying from or within the Philippines whether goods or services Documents needed ARE DELIVERY RECEIPTS AND SALES INVOICE
UNDER THE BIR TAX CODE SECTION 237
Importation (is buying from other countries whether goods or services). Documents needed
1. Duly endorsed Bill of Lading or Airway Bill, or certification by the carrier or agent of the vessel or aircraft
2. Certificate of Origin, if requested
3. Commercial Invoice, Letter of Credit or any other verifiable commercial document evidencing payment
4. Packing List
5. Sales Contract or Proof of Payment (if declared value is below the National Value Verification System (NVSS) reference values. The NVVS
is an internal tool of the Bureau of Customs (BOC) Assessment Officers to check the declared value of importation against the prevailing
reference values.)
6. Documents as may be required by rules and regulations, such as:
• Import Permit or Clearance, if the commodity is regulated
• Authority to Release Imported Goods
• Copy of an Advance Ruling, if the ruling was used in the goods declaration
OBJECTIVES OF PURCHASING
❖ Maintain the quality and value of a company’s products,
❖ minimize cash tied-up in inventory,
❖ maintain the flow of inputs to maintain the flow of outputs, and
❖ To procure materials economically at a cost consistent with the quality and service required
❖ Strengthen organizations competitive position
❖ To maintain good sources of materials by keeping suppliers with good track record
❖ To maintain the company’s reputation and credibility in the market by fair dealings and
prompt payments
❖ To develop and maintain good buyer seller relationship
PURCHASING RESPONSIBILITIES
❖ Procurement of goods through indigenous & foreign sources
❖ Checking of requisitions/purchase indents
❖ Selection of suppliers
❖ Obtaining quotations of the needed materials
❖ Analyzing quotations and bids etc., & preparation of comparative statement
PURCHASING RESPONSIBILITIES
❖ Consultation with the top management and accounting dept. for selection and approval of
quotations
❖ Negotiating contracts
❖ Checking legal conditions of contracts
❖ Issuance of Purchase Orders
❖ Follow-up of purchase orders for delivery in due time
PURCHASING RESPONSIBILITIES
❖ Verification and passing of supplier’s bills to see that payments are made promptly.
❖ Correspondence and dealing with suppliers, carriers etc., regarding shortages, rejections
etc.
❖ Maintenance of purchase records ❖ Maintenance of vendor performance records/data
❖ Evaluation of suppliers
❖ Conducting Supplier Audit
❖ Forecasting Demand
PURCHASING POLICIES
To purchase wisely, one needs to buy the right quality and quantity of materials or products at the best possible
price and at the appropriate time from the best vendor and service
BUYING SCENARIOS
Routine Order/Repeat The order is placed on a routine basis. No evaluation of the buying situation.
Orders
Procedural problem The procedure for placing an order is complicated such as numerous signatures or authorization.
Performance problem The buying order does not respond to the needs of other logistics activities.
Political problem The buying order is submitted to external and/or internal pressure. Goods services bought may be substandard.
ISSUES ON REPEAT ORDERS
Repeat Orders may be placed on the following conditions:
❖ The items to be ordered again should be of identical specifications.
❖ There should be no sudden and unannounced increase in the product prices.
❖ The quantity to be ordered should not be higher than the original order, for the first few
months of transactions
❖ Efforts should be made to obtain a quantity discount from the supplier.
❖ Quality of product and delivery must be consistent and price
quotations of materials must be well justified.
PURCHASING ORDERING SYSTEM
● RECEIPT OF PURCHASE REQUISITION
● SEARCH FOR SUPPLIER
● EVALUATE SUPPLIER & ITS PRODUCTS/SERVICES
● ISSUE PURCHASE ORDER
● INSPECTION OF SUPPLIES BEFORE RECEIVING
● ISSUANCE OF PAYMENT
SUPPLIER SELECTION GUIDELINES
refers to a number of procurement practices, aimed at finding, evaluating and engaging suppliers of goods and services that can
contribute the following:
❖ Economic variables such as pride and quality of service
❖ Degree of essentiality of transport to the organization
❖ Allocation of transport buying authority
❖ Achievement motive of the buyer
❖ Desire for risk reduction
❖ Desire for work simplification
❖ Investment by the firm in its own transport facilities
GUIDELINES FOR SUPPLIER SELECTION
❖Find out how long the supplier has been in business.
❖Find out who the supplier's primary customers are and ask for and check references.
❖Investigate a supplier's financial stability.
❖Check bank references.
❖Tour the supplier's facilities, if possible.
BID PREPARATION AND EVALUATION
❖ development of a set of specifications
❖ setting the requirements
❖ the requirements are communicated to the selected suppliers by a Request for Quotation
(RFQ) or a Request for Proposal (RFP) RA 9184
MODULE 2 PROJECT EVALUATION PROCUREMENT MANAGEMENT, JFM
PROJECT EVALUATION IN PROCUREMENT MANAGEMENT part 1module 2
• BID PREPARATION AND EVALUATION
• REQUEST FOR QUOTATION
• VENDOR ACCREDITATION
• Vendor evaluation
• Vendor development
• Negotiations
BID PREPARATION AND EVALUATION
❖ development of a set of specifications
❖ setting the requirements
❖ the requirements are communicated to the selected suppliers by a Request for Quotation (RFQ) or a Request for Proposal (RFP)
REQUEST FOR QUOTATION
A request for quotation (RFQ) is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific
products or services. RFQ, generally means the same thing as IFB (Invitation For Bid). An RFQ typically involves more than the price per
item.
The Request for Quotation (RFQ) should contain the ff. info:
❖ The product(s) should be described in detail.
❖ Specifications should be clear, concise and complete.
❖ Quantity, quality requirements, packaging, payment terms, and warranty, delivery and
inventory requirements.
VENDOR ACCREDITATION
The Vendor Accreditation Program ensures that all vendors who wish to supply are capable providing quality goods or services, and have
technical, commercial, and financial ability, adequate equipment and facilities, good service performance, or any other measures that will
ensure quality and reliability in every purchase made
FACTORS TO CONSIDER IN PURCHASING
Effective Vendor Relations:
1. Vendor evaluation
2. Vendor development
3. Negotiations
Vendor Evaluation: finding potential vendors and selecting competent suppliers wherein the following attributes are considered:
➢ financial strength
➢ quality management
➢ technical ability
➢ product/service quality
Vendor Development: includes
❖ Training of vendors/suppliers
❖ Developing harmonious relationships
❖ Visiting suppliers
❖ Conducting supplier audit

VENDOR PRELIMINARY & PERFORMANCE

EVALUATION SUPPLIER EVALUATION
❖ Include the company profile
❖ Evaluate the supplier’s quality system
❖ Indicate whether the supplier has process controls and standard process steps
❖ Take a look at their purchasing system
❖ Assess the company’s financial stability
❖ Evaluate their handling, storage and delivery systems
❖ Assess the company’s clients
SUPPLIER PERFORMANCE EVALUATION
❖ Evaluate the quality of the products being delivered
❖ Assess the services rendered by the company
❖ Describe the delivery service
❖ Evaluate the accounting system of the company
SUPPLIER SCORECARDS Supplier KPI’s
(KPI’S) ➢ Amount Over Invoiced (Php)
➢ Price of Products ➢ Amount Under Invoiced (Php)
➢ Quality of Products and Service ➢ Average Number of Days Early
➢ Delivery of Goods ➢ Average Number of Days Late
➢ Accuracy of Invoices ➢ Average PO Price (Current Period &
Last Period)
➢ Average PO Price Variance
LEGAL AND REGULATORY COMPLIANCE PRACTICES REQUIRED FOR SUPPLIERS
The Vendor shall:
➢ Comply with all applicable trade control regulations and applicable laws.
➢ Comply with environmental laws and safety regulations on use of hazardous materials and
ingredients.
➢ Provide necessary documents such as Certificate of Analysis(COA), Material Safety Data
sheets ( MSDS) to prove safety of products.
➢ Be honest, direct, and truthful in discussions with regulatory agency representatives and
government officials.
➢ The trading negotiation must not affect intellectual property ownership rights of the purchaser.
➢ Must not engage in bribery, kickback, bartering arrangement for goods or services, and/or
any other incentive to an employee of the company in order to retain its relationship with the
company.
➢ The Vendor will not make any attempt to induce any other individual or entity to submit or not
to submit a bid or proposal to the Purchaser.
NEGOTIATION STRATEGIES NO, NO
➢ Don’t display temper, frustration and anger that can spoil the negotiation process and logical thinking.
➢ Don’t communicate anything to the supplier that reduces bargaining power
➢ for example: "You're our only source." "We have 200,000 budgeted for this purchase." "I have to have it now." etc.
➢ Be intelligent and cautious.
THE ART OF NEGOTIATING :
➢ Preparation is the Key
➢ Have a Strategy
➢ Watch for Clues
➢ Find the Leverage
➢ The Offer
➢ Go for a WIN-WIN Solution
➢ Closing the Deal
PURCHASING CODE OF ETHICS
● Strive to conduct all business with honesty, fairness, integrity and loyalty to the system and our profession
● Ethical behavior and processes are practiced consistently.
● Conduct ourselves in such a manner as to merit the respect of our employer, co-workers and peers.
● Refuse all gifts or gratuities and do not enter into any transactions resulting in our personal benefit.
● Exercise skill and good judgment to obtain the maximum value for each dollar/peso of expenditure.
● Treat with discretion all information obtained in confidence.
● Strive for standardization to reduce cost and further the development and methods of products that emphasize high quality,
safety and effectiveness.

MODULE 3 PROJECT EVALUATION 2 PROCUREMENT MANAGEMENT, JFM

PROJECT EVALUATION IN PROCUREMENT MANAGEMENT part 2 MODULE 3
Purchasing Strategies and Techniques
• Common Purchasing Strategies
• Global Sourcing & Vendor Development
• Risk Management
• Purchasing Models
• Green Purchasing
• Efficient Purchasing Strategies
• Vertical, Backward & Forward Integration
• Receiving Purchases Guidelines
• Returning of Goods to supplier
• Purchase Order (PO)
COMMON PURCHASING STRATEGIES
❖ Supplier Optimization
❖ Requiring Suppliers to Adopt TQM, Total Quality Management Principles
❖ Global Sourcing
❖ Vendor Development
❖ Risk Management
❖ Green Purchasing
❖ Learning to psychologize suppliers
SUPPLIER OPTIMIZATION
➢ choosing an optimum mix of vendors who can provide the best prices and terms
➢ means that the less able suppliers who cannot provide a quality service at the terms and prices required are discarded Requiring
Suppliers to Adopt TQM,Total Quality Management Principles
➢ Vendors are required to provide increasing quality service with zero or minimum defects
➢ The supplier ensures purchasing best practices using a number of tools such as six sigma.
Global Sourcing
➢ Sourcing from many vendors, other than local ones, regardless of their country of origin.
Vendor Development
➢ developing processes that assist the vendors.
➢ if the supplier is unable to perform to the required standards, the purchaser may assist the vendor in improving their service
Vendor Development
➢ Nurture a Relationship
➢ Work Together to Focus Understanding offers to help them and work together in order to get that product done correctly and on time.
➢ Work Together on Specifications and other details
➢ Promise Continued Business in exchange for the quality of products/services they give
Risk Management
➢ being prepared for the negative effects of a natural or human disaster
➢ being concerned with the risk management of supply chain
➢Leverage Relationships with Suppliers to eliminate risk and gain protection in a crisis.
➢Make sure your suppliers can provide you with an acceptable substitute or give you preference when demand exceeds supply.
➢ For sole sources:
➢ Refrain from sourcing something that is only made by one supplier (such as a semiconductor supplier)
➢ Try to redesign product so that you will have alternatives
Green Purchasing
➢ this strategy supports the need for recycling and purchasing products that can reduce thee negative impact on the environment.
➢ promoting procurement best practices of minimizing costs, maximizing quality and ensuring that quality products are delivered on time.
EFFICIENT PURCHASING STRATEGIES
1. Blanket order
➢ an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period of time, sometimes at
predetermined prices.
➢ normally used when there is a recurring need for expendable goods.
➢ items are purchased under a single purchase order (P.O) rather than processing a separate P.O. each time supplies are needed.
➢ Only one supplier for all units of a certain product
➢ Stockless Purchasing: the supplier maintains the inventory for the purchaser
➢ Standardization: standardizing components such as labeling, coloring, packaging by purchasing company
➢ Electronic ordering: through electronic data interchange (EDI), Emails and Other devices.
2. Many suppliers strategy
➢ the supplier responds to the demands and specifications for a request for quotation, with the order going usually to the lowest bidder
➢ there is aggressive competition
➢ supplier is held responsible for quality, cost, and delivery competencies as well as technology, expertise and forecasting abilities
3. Few Supplier Strategy
➢ results in long-term relationship with suppliers
➢ allows suppliers to lower their production costs and transaction costs
➢ suppliers may support JIT system as well as technological expertise
➢ mutual trust is built up
4. Vertical Integration Strategy
➢the buyer strives to buy its suppliers or to produce its own goods or services
previously being purchased
➢Vertical integration describes when a company purchases or starts a
company that it either buys from or sells to and integrates this new
business into its own.
VERTICAL INTEGRATION SAMPLE
1. Carnegie Steel Company was a pioneer in the use of vertical integration. The firm controlled the iron mines that provided the key
ingredient in steel, the coal mines that provided the fuel for steelmaking, the railroads that transported raw material to steel mills, and the
steel mills
themselves. Having control over all elements of the production process ensured the stability and quality of key inputs. By using vertical
integration, Carnegie Steel achieved levels of efficiency never before seen in the steel industry.
2. A lumberyard that started building houses, for example, would find that the skills it developed in the lumber business have very limited
value to home construction. Such a firm would be better off selling lumber to contractors.
3. a situation in which an aluminum company is purchased by a can company. People within the
aluminum company may believe that they do not need to worry about doing a good job because the can company is guaranteed to use
their products
4. Some universities have used vertical integration by creating their own publishing companies. The Harvard Business Press is perhaps the
best-known example.
QUESTION: Are there other ways that your company might consider vertical integration? If so, what benefits might this create?
Backward Vertical integration-the firm buys it own suppliers
Ex 1. Ford Motor Company manufactures its own car radios.
2. Bridal Shop manufactures its own flowers
3. Disney has their own production companies
➢ Forward Vertical integration-the supplier makes the finished products.
Ex 1. Disney has pursued forward vertical integration by operating more than three hundred retail stores that sell merchandise based on
Disney’s characters and movies. This allows Disney to capture profits that would otherwise be enjoyed by another store. Each time a
Hannah
Montana book bags are sold through a Disney store, the firm makes a little more profit than it would if the same book bag were sold by a
retailer such as Target.
2. Supplier of chicken- produces its own lechon manok e.g Chooks to go, Bounty Fresh
PRODUCE or PURCHASE DECISION
PRODUCE: PURCHASE
- Lower Production cost - Lower acquisition
- Incompatible suppliers - Preservation of supplier promise
- Assurance of quality of materials - Inadequate Production capacity
- Protection of design - Inventory cost can be reduced
- Increase profit margin
Objective is to satisfy the ROI the company wants to achieve
ROI = Revenue less Cost Investment
PRODUCE or PURCHASE DECISION PURCHASING KEY MODELS
The Buy-grid Framework
➢This framework establishes critical decision points in the purchase
process. More specifically, as the buyer moves from stage one to eight,
his/her commitment to suppliers currently on the list increases.
The Buy- Class Characteristics
➢This model tries to explain that decision making process is carried out
by individuals, in interaction with other people, in the context of a formal
organization, which in turn is influenced by a variety of sources in the
Environment.
RECEIVING PURCHASED GOODS:GUIDELINES
➢ All packaging should be carefully examined for any visible evidence of damage, particularly if the purchase is fragile or costly.
➢ The items delivered must be checked against the invoice to make sure that the quantities received are the same as the quantities being
invoiced.
Damaged Shipments and Shortages
➢ Any damage to the package, no matter how slight, should be noted on the carrier's and receiver's delivery receipt.
➢ If the supplier’s van is unwilling to wait while the contents of the package are inspected, the receiver should note on the delivery
receipt that the condition of the contents is unknown
HOW TO DEAL WITH DAMAGED ITEMS
➢ Notify the supplier in writing within 15 days of receipt of the damaged merchandise:
➢describe the damage
➢give the date the shipment was received
➢include a copy of the delivery receipt
➢include a written estimate from the supplier of the costs to replace or repair the damaged items
➢provide a copy of the supplier's original invoice
➢provide copies of all correspondence pertaining to the claim
RETURNING GOODS TO THE SUPPLIER
➢ Goods should be returned by notifying first the supplier.
➢ Get a return authorization number and have procedures as to howand when a return shipment should be made.
➢ The individual returning the goods should keep a record of the name of the individual authorizing the return, the authorization number
and date
PURCHASING DOCUMENTS
➢ Purchase Requisition Form
➢ Canvass Form
➢ Purchase Order
➢ Receiving Report
➢ Delivery receipt
➢ Receiving Report
Purchase requisition - is a document generated internally to notify the purchasing department of items it needs to order.
Canvass - is an activity done by Purchasing to compare prices, quality and the ability of suppliers to deliver the requirement.
THE PURCHASE ORDER
➢ Supplier Number, Name and Address (FAX if available)
➢ Ship-to Address This is the address where the supplier will ship the ordered goods or where service will be provided. It includes, street
and city address, room number, and the name of the person receiving the order/service.
➢ Purchase Order Number, Date and Page Number
➢ Payment Terms, Freight Terms
➢ Buyer & Currency Information The buyer who issued this purchase order along with their corresponding contact information.
➢ Invoicing Instructions This is the address where all invoices against this order are to be sent for payment.
➢ Start and End Date Start and end dates indicate the date range as to when the purchase order is valid.
Body of the Purchase Order
➢ contains the detailed information of the goods/services being ordered. Each line item specifies quantity, unit of measurement, catalog
number, description, unit price
➢ Total PO Amount - the total of all line items being ordered
➢ Buyers Signature - this is the signature of the authorized Purchasing Officer
MODULE 4 FORECASTING TECHNIQUES JFM
FORECASTING TECHNIQUE FOR ASSISTANCE IN INVENTORY AND WAREHOUSE MANAGEMENT MODULE 4
• Demand Forecast • Inventory Managing
• Lead-time • How much to Order?
• Reorder Point Calculations • When to Re-order?
• Safety Stock Calculations • What is the Safety Stock
• Reorder with EOQ Calculations
• Managing Inventory with Dependent Demand
DEMAND FORECAST AND LEAD TIME INFORMATION
➢ Demand Forecast - a reliable estimate of amount and timing of demand.
➢ Lead time – length of time orders shall be delivered; the time between the placement and receipt of an order
FORECASTING
Determining Inventory Levels by estimating future demands.
Forecasting estimating based on future demands based on:
➢ Historical figures to predict future sales
➢ Creation and collection of information
➢ Management of Information
➢ Making of well Informed decisions about what you need to produce
Forecasting helps to improve customer service, reduce inventory, increase productivity, improve deliveries from suppliers.
USES OF FORECASTING
Forecasting is meaningful only if it helps to:
➢Improve customer service
➢Reduce Inventory
➢Increase productivity
➢Improve deliveries from suppliers

The above entries should be able to tell you what needs to be improve whenyou indicate your own information.
FORECASTING STRATEGY
1. Establish what do you need and why?
2. Select the right structure
3. Validate using historical figures
4. Document the validation made
5. Management is the KEY
QUALITATIVE MODELS
Qualitative models incorporate judgmental or subjective factors.
These are useful when subjective factors are thought to be important or when accurate quantitative data is difficult to obtain.
Common qualitative techniques are:
➢ Delphi method.
➢ Jury of executive opinion.
➢ Sales force composite.
➢ Consumer market surveys.
QUALITATIVE MODELS
Delphi Method – This is an iterative group process where (possibly geographically dispersed) respondents provide input to decision makers.
Jury of Executive Opinion – This method collects opinions of a small group of high-level managers, possibly using statistical models for
analysis.
Sales Force Composite – This allows individual salespersons to estimate the sales in their region and the data is compiled at a district or
national level.
Consumer Market Survey – Input is solicited from customers or potential customers regarding their purchasing plans.
Six Sigma Methodology:
The DMAIC or DMAICT project methodology has five/six phases:
1. D-Define Opportunity
2. M-Measure Performance
3. A-Analyze Opportunity
4. I-Improve Performance
5. C-Control Performance
6. T- Transfer best practice
INVENTORY MANAGEMENT FORMULAS THAT WILL HELP BUYER TO FACILITATE NEXT
PURCHASE
➢ Economic Order Quantity (EOQ) no. of mos. supply desired/demand x Ave usage
➢ Reorder Point (ROP Avg. mo. Usage (demand) x lead-time in mos. (D X LT)
➢ Safety Stock (SS) (max monthly usage – min monthly usage) x lead time in Mos.
REORDER POINT CALCULATIONS
FORMULA: Reorder Point = (avg.mo usage x lead-time in mos.)
EXAMPLE:
Ave Mo Usage: 50 units
Lead time: 2 months
(50 X 2)
Reorder point: 100 units
BASIC EOQ CALCULATIONS
FORMULA: Order Qty = (NO of Mos supply x Ave usage)
EXAMPLE:
Ave Mo Usage: 50 units
No of Mos Supply required: 3 months
(3 X 50)
Order Quantity: 150 units
SAFETY STOCKS CALCULATIONS
FORMULA: (max monthly usage – min monthly usage) x lead time in Mos
EXAMPLE:
Max monthly Usage 100 units
Minum Mo Usage: 50 units
= Answer 50 units X 3 months supply
No of Mos Supply required: 3 months
Order Quantity: 150 units

FIXED ORDER INTERVAL MODEL

➢The fixed-order-interval (FOI) model is used when orders must be placed at fixed time intervals (weekly, twice a month, etc.) The timing
of orders is set.
➢Applied by many retail operations (drugstores, grocery stores, hardware stores)
➢ orders or varying quantities are placed at fixed time intervals (weekly, monthly, etc.)
SINGLE PERIOD MODEL
A single period inventory model is a business scenario faced by companies that order seasonal or one-time items. There is only one chance
to get the quantity right when ordering, as the product has no value after the time it is needed. There are costs to both ordering too much
or too little, and the company's managers must try to get the order right the first time to minimize the chance of loss. Sample items ordered
on a seasonal factor are fresh fruits, vegetables, sea foods, greeting cards and magazines. Tagged as Newsboy Problem.

The structure, content and method of managing the information before, during and after submission of the
bid should be guided by the principles of ethical and fair sourcing practice and organizational policy. The
buyer should understand the business culture and should be aware that some forms of bidding may not be
appropriate in all places. Generally accepted in RFPs; not allowed in Invitation forBids (IFB).
- ALTERNATIVE AND INNOVATIVE PROPOSAL
The time it takes. Overuse may discourage some suppliers from attending, especially during peak seasons
for their trade or industry. Potential suppliers may not feel comfortable attending a pre bid meeting with
their competitors and could refrain from asking questions.
- Potential Problems
The history of past relationships (positive or negative). The belief that an issue can be resolved only if
someone wins and someone loses. The “mixed motive” nature of most negotiations, where negotiators
want their own way but also want a continuing relationship. A situation in which the negotiators are
accountable to someone else for their performance.
- Consideration
The crisis stage as negotiations as the expiration of the CBA approaches.Bargaining tempo
increases.Concessions are made at a faster rate.Less important issues are dropped (this is why you
prioritize).Final offers are made.Parties reduce demands for quid pro quo.Impasses are of great concern at
this stage.
- 11 hour bargaining
The first task is to establish the significance to the buying organization of the purchased items and then to
gain an understanding of the market conditions.
- PROCUREMENT PLANNING
The inventory level of an item when next order should be placed
- RE-ORDER POINT
The action or Occupation of acquiring military equipment and supplies?
- Defense Procurement
The formula of ECONOMIC ORDER QUANTITY is?
- no. of mos. supply desired x Ave usage
The title of RA 8792 is?
- E-Commerce Act of the Philippines 2000
The action obtaining or buying something “financial assistance for the government procurement of legal
advice “
- PROCUREMENT
The law that governs amazon, buy.com, ebay, shoppee, LAZADA, ZALORA in the Phils?
- RA 8792
The first step in bidding for government services or supplying a product is?
- PRE PROCUREMENT SERVICES
The 2ND step in bidding for government services or supplying a product is?
- PRE BID CONFERENCES
The 3RD step in bidding for government services or supplying a product is?
- SUBMISSION OF BIDS
The 4TH step in bidding for government services or supplying a product is?
- OPENING OF 1ST ENVELOPE of ELIGIBILITY (DOCS & TECHNICAL)
The 5TH step in bidding for government services or supplying a product is?
- OPENING OF 2ND ENVELOPE (Financial Proposal)
The 6TH step in bidding for government services or supplying a product is?
- BEST EVALUATION RANKING
The 7TH step in bidding for government services or supplying a product is?
- POST QUALIFICATION
The 8TH step in bidding for government services or supplying a product is?
- CONTRACT AWARD
The first step of Government procurement is?
- Department Requisition Slip and Order
The second step of Government procurement is?
- Procurement Department for Review, Research, and Planning
The third step of Government procurement is?
- Review of TWG and Budget department
The fourth step of Government procurement is?
- Recommended of VP of the government agency
The fifth step of Government procurement is?
- Procurement Committee
The sixth step of Government procurement is?
- Department of Budget Management (DBM) will send to COA and Ombudsman
The seventh step of Government procurement is?
- Commission of Audit and Ombudsman will review and send back to DBM
The Eight step of Government procurement is?
- Department of Budget Management will issue a SARO
takes root in more businesses, executives are thinking more broadly about the risks their company faces.
Many of the most significant ones are driven by relationships with other entities, such as service providers,
alliances and joint ventures
- Integrated Vies Risk
This should take place well before taking any purchasing action.
- PROCUREMENT PLANNING

A procurement practice that: Is initiated by a request for proposals, setting out the
organization’srequirements and criteria for proposal evaluation; Contemplates the submission of timely
proposals by the maximum number of possible suppliers; Usually provides for discussion with those
suppliers found to be within the competitive range; Concludes with the award of a contract to the one
supplier whoseproposal is most advantageous to the organization, consideringprice and the other factors
included in the solicitation.
- Competitive Proposal
All potential bidders should be invited to the pre bid conference. A bidder should not be invited if the
buying organization has no intention of doing business with that supplier. If a conference results in
changes to the solicitation, the organization issues a written amendment to the solicitation.
- Selection of participant
Achieving consensus within the respective organizations.Bargaining teams (especially union teams) are
not always united.Political rivalries.Diverse constituencies.Resolving internal disputes before the
negotiations begin is critical
- Intraorganizational Bargaining
Activities aimed at changing the other party’s attitude during negotiations.Assumes that a good relationship
results in good concessions.It may be positive or negative [US Steel story].It can be used to accomplish
distributive or integrative bargaining.
- Attitudinal Structuring
A sealed bid is a bid that has been submitted in a sealed envelope to prevent its contents from being
revealed or known before the deadline for submission and opening of all bids. Formal advertising is
frequently used for the procurement of services such as building or maintenance contracts, construction
and equipment, selling of scrap and surplus.
- Sealed Bids/Formal Advertising
An act providing for the Modernization, Regulation, Standardization of the procurement activities
government and for other purposes?
- RA 9184
Are a mixture of conflict and collaborative behaviors. Parties engage in the defense of each ones self-
interest while attempting joint problem solving.
- Labor Negotiation
A reliable estimate of amount and timing of demand.
- DEMAND FORECAST
After trading of opening position, offers, counter offers are exchanges in Close Gap
- Gap-Closing Sequence
All of them are bargaining sub processes, except one?
- Delivered Bargaining

All of them are Primary bargaining activities except one?

- Abusive language
All of them are parts of Negotiation, Except one?
- Counter Offer Sequence
All of them are part of Management Preparation for negotiation, except one?
-
All of them are rules in counterproposal except one?
-
All of them are activities at the local, except one?
-
All of them are Stages of Collective Bargaining, Except one?
 - Delivery
All of them are activities at the NATIONAL, except one?
- Union will not accept any counter proposal
All of them are objectives of Negotiation except one?
- To reject all bidders and Find another one
All of them are Initial proposal activity except one?
- Closing statement
All below are templates for Procurement Plan, except one?
- Registration date of Supplier
All below are the CHECKLIST OF PRE-PROCUREMENT CONFERENCE except one?
- Get a clearance from from GPPB
All below are part of the contents of invitation to bid, except one?
- Name of Buyer agency
All below are techniques in Procurement Planning, except one?
- Supply Accreditation Risk Management
All below are PREPARATION bidding documents following the standard of GPPB, except one?
- Get a clearance from from LGU
Lots are structured to increase cost reduction opportunities. Buyer can develop lot bidding rules requiring
suppliers to: Bid on all lots; Bid on only the lots that the supplier can provide; Or allowing suppliers to
structure their own lots to maximize their efficiencies.
- Lotting Strategies (Online Bidding)
Likely to be used when the negotiator has a high degree of concern for his/her own outcome; likely to
occur when negotiator is in a very strong bargaining position relative to the other party. When both parties
have moderate concern for their own and the other’s out-comes, the philosophy is likely to be
compromising, where they split any differences.
-
Likely to be used when both parties have a high degree of concern for their own and the other’s outcomes.
• Example: negotiations between partners, and negotiation where buyer and supplier want to do business
with each other.
- Win Win or Cooperational
Likely to be used when both negotiators have a low degree of concern for their own and the other’s
outcomes; Likely to occur when both parties prefer not to do business with each other but are forced to do
so because of circumstances beyond their control.
- Lose Lose Confrontational
Length of time orders shall be delivered; the time between the placement and receipt of an order.
- LEAD TIME
Sourcing team meets with all the potential suppliers. Topics for discussion include blueprints and
specifications, SOWs, quotation due dates, terms and conditions of quotations, proposal evaluation
criteria, delivery schedules and materials, releasing procedures, invoicing procedures and documentation,
and other requirements.
- How to arrange and conduct
Step 1 in Procurement Risk Management Program Steps?
- Establishing the overall goals of the program
Step 2 in Procurement Risk Management Program Steps?
 - Gathering the data needed to manage the process (e.g., supplier spend levels, performance data,
price & cost trends, demand forecasts, upcoming contractual milestones).
Step 3 in Procurement Risk Management Program Steps?
- Monitoring the supply base for problem & opportunities.
Step 4 in Procurement Risk Management Program Steps?
- Creating mitigation plants for the types of events that might leave the company exposed
Step 5 in Procurement Risk Management Program Steps?
- Prioritizing risk mitigation efforts by segmenting supply categories by complexity & importunate.
Step 6 in Procurement Risk Management Program Steps?
-
Step 7 in Procurement Risk Management Program Steps?
- Measuring overall risk exposure level, taking into account the maturity of the market, complexity of
the solution, etc.
Step 8 in Procurement Risk Management Program Steps?
- Assigning a monetary value to the potential impact of each risk event (e.g., margin at risk, cost of lost
productivity, cost of schedule changes.
Step 9 in Procurement Risk Management Program Steps?
- Refining the plan through consideration of the impact of knows events

Used when inadequate specifications preclude the initial use of competitive bidding. The first step: bids are
requested only for the technical proposals without any prices. The second step: bids are sent only to those
suppliers that submitted acceptable technical proposals, asking those suppliers to submit an updated bid
with pricing.Pre qualified bidding•Bids are solicited only from those organizations that have alreadybeen
shown to meet the minimum requirements of yourorganization.•The bidding process is not open to others
in the supply base.
- Two step bidding
One of the principle of government procurement that the any activity will be posted in the department
website or government social media so that the government audit, and other stake holders can monitor the
procurement activity?
- Public monitoring
One of the principle of government procurement is that the price or cost of the items to be purchase must
be the lowest price but with highest quality
-
One of the principle of government procurement that the leader and its personnel will take the
responsibility of anything bad happen on the project?
- Accountability
One of the principle of government procurement wherein everyone, everybody, everything can be seen on
the transaction of procurement?
- Transparency
One of the principle of government procurement that cut the bureaucratic procedure to start the
procurement project?
- Streamline process
Describes which product will be acquired from vendor as well as when and how they will be acquired.
What, When, How
 -
Documents transmitted electronically are considered to be as valid as the original documentsBoth parties
should establish in advance their acknowledgement and acceptance of the sourcingorganization’s terms
and conditions as a part of business transactions conducted via fax or e mail.Supply management must
ensure that a process is inplace to ensure that the terms and conditions are sent to potential vendors.
- Electronics Solicitation (RFx)
Provides a mechanism for discriminating between the components of the total purchasing requirements
whether goods, works or services, and a tool for developing specific strategies to meet the needs of the
organization with respect to each group of purchases.
- Supply Positioning

Players works to bring closure to the open issues and to make sure all the positive aspects of the
negotiation is highlighted.
- Closing Sequence
Players put out their aspirations and settlements positions?
-
Prior to any action taken in Atlas, is essential for the timely solicitation of quotations, bids or proposals; the
award of contracts; and the delivery of inputs. Procurement planning entails more than the selection of a
procurement method for various goods, works and services and when to schedule activities, but combines
the legal and institutional frameworks in which procurement must be carried out.
- PROCUREMENT PLANNING
It establishes a forum for two way communication between the buying organization and the supplier to
discuss details of the RFx package at the beginning of the bid process. By meeting in an open forum, the
organization will quickly learn of any discrepancies or errors in the bid package (which should be made as
an addendum to the bid package) thus expediting the bid process.
- Potential Benefits
It should not be limited to specific requisition but part of positioning the procurement unit to best advantage
-
Individuals are assigned to draft proposals for specific parts of the CBA. Timetables for negotiations are
established.
- Coordination Stage
If you say Competitive bidding in Government procurement?
- Lowest Price but with Highest Quality
Is the process of discussion between the parties to a contract to finalize the terms of the contract.
- Contract Negotiation
Is used when orders must be placed at fixed time intervals (weekly, twice a month, etc.) The timing of
orders is set.
- FIXED ORDER INTERVAL MODEL
Is conducting the negotiation through electronic means?
- E-Negotiations
Is the process of which the two parties arrive at an arrangement which satisfies them both.
-
Id problem provisions. Look at grievance trends.
- Review Current CBA for necessary change
Chief negotiatorCost specialistSecretary-/note takerLanguage draftsmanOperations specialist (determines
the impact of concessions on production and processes.
- Review the previous negotiation
Chief negotiatorCost specialistSecretary-/note takerLanguage draftsmanOperations specialist (determines
the impact of concessions on production and processes.
- Review the previous negotiation
What is the law for Government Procurement?
- RA 9184
What Section in RA 9184 states that the acquisition of goods, consulting services, and contracting for
infrastructure projects by procuring entity?
- Section 5 aa
What law governs the Electronics Transactions in the Philippines?
- RA 8792
Bargaining issues in which the parties share a common problem requiring resolution.Employee training
programs, substance abuse issues, safety concerns.Encourages trust, understanding, and cooperation.
- Integrative Bargaining
Bid situations that are complex (due to specifications, number of suppliers bidding, value, critical nature of
resulting contract, etc.).
-
Refers to the acquisition of goods, consulting services, and contracting for infrastructure projects by
procuring entity?
- PROCUREMENT
Refers to telephone, written or electronics quotations whose monetary value are less than pre-established
monetary limit?
- Informal Bid/Quotation
Must be used for all government procurement activities and all its branches and instrumentalities including
GOCC , GFI, SUC, AND LGU.
- Scope and Application
Zero-sum bargaining situations.Bargaining issues in which the goals of the two parties to the bargaining
are in direct conflict.One party’s gain is the other party’s loss (the central issue in collective bargaining as
negotiators probe for the other’s real goals).Encourages threats, bluffs, and secrecy).
- Distributive Bargaining

Electronic ordering: through electronic data interchange (EDI), Emails and Other devices.
- Blanket Order
For sole sources:Refrain from sourcing something that is only made by one supplier (such as a
semiconductor supplier) Try to redesign the product so that you will have alternatives.
- Risk Management
Only one supplier for all units of a certain product.
- Blanket Order
Vendors are required to provide increasing quality service with zero or minimum defects?
- Requiring Suppliers to Adopt TQM, Total Quality Management Principles
Reduce operating cost and capital investment Effective plant layout Coordinating with government policies
Employee Security, welfare and public needs.
 - Objective of selecting suitable site or location
Results in long-term relationship with suppliers.
- Few Supplier Strategy
Being concerned with the risk management of supply chain
- Risk Management
Being prepared for the negative effects of a natural or human disaster.
- Risk Management
Normally used when there is a recurring need for expendable goods.
- Blanket Order
Nurture a Relationship.
- Vendor Development
Suppliers may support the JIT system as well as technological expertise.
- Few Supplier Strategy
Standardization: standardizing components such as labeling, coloring, packaging by purchasing company.
- Blanket Order
Sourcing from many vendors, other than local ones, regardless of their country of origin.
- Global Sourcing
Stockless Purchasing: the supplier maintains the inventory for the purchaser
- Blanket Order
Developing processes that assist the vendors.
- Vendor Development
Domestic OR International Which country? And the decision is taken on the basis of
Political/legal concerns. Export or import quotas Currency exchange rate Cultural issues.
- Within the country or outside
Describes when a company purchases or starts a company that it either buys from or sells to and
integrates this new business into its own.
- Vertical Integration Strategy
Domestic OR International Which country? And the decision is taken on the basis of
Political/legal concerns. Export or import quotas Currency exchange rate Cultural issues.
- Within the country or outside
While starting a new factory. During the expansion of the existing plant. When the existing plant is to be
relocated at some other place, to remove the drawbacks of the present location or to gain the benefits of a
still better location. Expiry of lease and the non renewal.
- Need for selecting suitable site or location
Work Together to Focus Understanding offer to help them and work together in order to get that product
done correctly and on time.
- Vendor Development
What is the EXECUTIVE ORDER for BOARD OF INVESTMENT?
- EO 226
Work Together on Specifications and other details
- Vendor Development
Leverage Relationships with Suppliers to eliminate risk and gain protection in a crisis.
- Risk Management
Lower acquisition - Preservation of supplier promise - Inadequate Production capacity, Inventory cost
can be reduced
- Purchase
Lower Production cost - Incompatible suppliers - Assurance of quality of materials - Protection
of design - Increase profit margin
- Produce
Make sure your suppliers can provide you with an acceptable substitute or give you preference when
demand exceeds supply.
- Risk Management
Means that the less able suppliers who cannot provide a quality service at the terms and prices required
are discarded.
- Supplier Optimization
Mutual trust is built up.
- Few Supplier Strategy
Is a standard business process whose purpose is to invite suppliers into a bidding process to bid on
specific products or services?
- Request for Quotation

If the supplier is unable to perform to the required standards, the purchaser may assist the vendor in
improving their service.
- Vendor Development
In Supply Chain Management, Sourcing abroad?
- Importation
In the selection of the region, the materials and manpowers are heavily considered?
- Availability of resources(raw materials ,HR)and customers
In SUPPLY CHAIN MANAGEMENT, A buying in local source only
- Domestic buying
Items are purchased under a single purchase order (P.O) rather than processing a separate P.O. each
time supplies are needed.
- Blanket Order
In the selection of the region, the materials and manpowers are heavily considered?
- Availability of resources(raw materials ,HR)and customers
Is only part of Procurement which covers much more work leading to and also after the order has been
placed.
- PURCHASING
__________ is a commercial building for storage of goods?
- Warehouse
promoting procurement best practices of minimizing costs, maximizing quality and ensuring that quality
products are delivered on time.
- Green Purchasing
Promise Continued Business in exchange for the quality of products/services they give.
- Vendor Development
The functions inside and outside a company that enable the value chain to make products and provide
services to the customer.
- Definition OF SCM
The buyer strives to buy its suppliers or to produce its own goods or services previously being purchased.
- Vertical Integration Strategy

The Objective of E-Commerce Act to facilitate domestic and international dealings, transactions through
electronics, what section in the law you can read this?
- RA8792 SEC. 3
The supplier responds to the demands and specifications for a request for quotation, with the order going
usually to the lowest bidder.
- Many Supplier Strategy
The supplier ensures purchasing best practices using a number of tools such as six sigma.
- Requiring Suppliers to Adopt TQM, Total Quality Management Principles
The _________________________ensures that all vendors who wish to supply are capable of providing
quality goods or services, and have technical, commercial, and financial ability, adequate equipment and
facilities, good service performance, or any other measures that will ensure quality and reliability in every
purchase made.
- Vendor Accreditation Program
____________The network of services, material, and information flow that link a firm’s customer relations,
order fulfillment, and supplier relations processes to those of its suppliers and customers.
- SUPPLY CHAIN
The items delivered must be checked against the invoice to make sure that the quantities received are the
same as the quantities being invoiced.
- Receiving Purchase Goods Guidelines
The firm buys its own suppliers.
- Backward Vertical Integration
This model tries to explain that decision making process is carried out by individuals, in interaction with
other people, in the context of a formal organization, which in turn is influenced by a variety of sources in
the environment.
- Buy Class Characteristics
This strategy supports the need for recycling and purchasing products that can reduce the negative impact
on the environment.
- Green Purchasing
The _________________________ensures that all vendors who wish to supply are capable of providing
quality goods or services, and have technical, commercial, and financial ability, adequate equipment and
facilities, good service performance, or any other measures that will ensure quality and reliability in every
purchase made.
- Vendor Accreditation Program
The procedure for placing an order is complicated such as numerous signatures or authorization.
- Procedural problem
____________the network of services, material, and information flow that link a firm’s customer relations,
order fulfillment, and supplier relations processes to those of its suppliers and customers.
- SUPPLY CHAIN
There is aggressive competition, supplier is held responsible for quality, cost, and delivery competencies
as well as technology, expertise and forecasting abilities.
- Many Supplier Strategy
This module is the study on supply chain management and how it applies on your roles in the organization
and know what are the really important elements in terms of planning, integration & cost reductions.
- Overview and objectives
This framework establishes critical decision points in the purchase process. More specifically, as the buyer
moves from stage one to eight, his/her commitment to suppliers currently on the list increases.
- Buy Grid Framework
The supplier makes the finished products.
- Forward Vertical Integration
The title of RA 8792 is?
- E-Commerce Act of the Philippines 2000
The functions inside and outside a company that enable the value chain to make products and provide
services to the customer.
- Definition OF SCM
The buyer strives to buy its suppliers or to produce its own goods or services previously being purchased.
- Vertical Integration Strategy
All below are RFQ CONTAIN INFORMATION EXCEPT ONE?
- The Supplier Process
A FINAL AMOUNT OF SHIPMENT, issued by exporter to importer to be used in Bank assessment?
- COMMERCIAL INVOICE
An order the customer makes with its supplier which contains multiple delivery dates scheduled over a
period of time, sometimes at predetermined prices.
- Blanket Order
A decision to transfer outside because the different culture that cannot be assimilated?
- Cultural issues
A NON FISCAL INCENTIVES FOR BENEFITS OF BOI, except one?
- Tax credits: 50% tax credits on breeding stocks and genetic materials within 10 years from the date of
registration or commercial operations.
All of them are Supplier evaluation performance list, except one?
- delivered the quality of the Services with condition
Allows suppliers to lower their production costs and transaction costs.
- Few Supplier Strategy
All of them are Common Purchasing Strategies except one?
- Requiring Suppliers to Adopt TQM, Total Quality Management Principles
ALL OF THEM ARE DOCUMENTS NEEDED FOR IMPORTATION EXCEPT ONE
- SALES INVOICE
All of them are below the supplier evaluation list except one?
- Exclude the company profile
__________ Are used by manufacturers, exporters, wholesalers, transport businesses, customs , etc?
- Warehouse

All of them are samples of PURCHASING CODE OF ETHICS, Except one?

 - Give information to the favorable supplier
All below are RFQ CONTAIN INFORMATION EXCEPT ONE?
- The Supplier Process
A decision to transfer outside because of the law concerning business?
- Political/legal concerns.
An order the customer makes with its supplier which contains multiple delivery dates scheduled over a
period of time, sometimes at predetermined prices.
- Blanket Order
All packaging should be carefully examined for any visible evidence of damage, particularly if the purchase
is fragile or costly.
- Receiving Purchase Goods Guidelines
A decision to transfer outside because of the tariff quota?
- Export or import quotas
All of them are Purchasing Code of Ethics except one?
- Make sure to received benefit by getting kickbacks without the knowledge of the company.
All of them are PURCHASING RESPONSIBILITIES, EXCEPT ONE?
- Give overall SCM input and output
A decision to transfer outside because of a big gap in the money currency?
- Currency exchange rate
A NON FISCAL INCENTIVES FOR BENEFITS OF BOI, except one?
- Privilege to operate a PRIVATE WAREHOUSE
Any damage to the package, no matter how slight, should be noted on the carrier's and receiver's delivery
receipt.
- Damage Shipments and Shortages

PART 1
1. How many units are the minimum that the school may offer under bsca in ched memo 30-s2021 for
research? - 6 units
2. What is the new ched memo for bsca? - ched memo 30-s2021
3. What is the law replacing the tariff and customs code of the philippines?- ra 10863
4. How many units are the minimum that the school may offer under bsca in ched memo 30-s2021 for
professional?- 62 units
5. How many units are the minimum that the school may offer under bsca in ched memo 30-s2021 for supply
chain management? - 12 units
6. What is the law amending some provisions for tariff and customs code of the philippines?- ra 7651
7. How many units are the minimum that the school may offer under bsca in ched memo 30-s2021 for cbme?- 6
units
8. What is the new ched memo for bsca?- ched memo 30-s2021
9. How many units are the minimum that the school may offer under bsca in ched memo 11-s2005?- 138 units
10. What is the ched memo for bsca?- ched memo 11-s2005
11. What is the law that the philippines adopted from the wto/wco customs valuation standard? Ra 8181
12. What is the law that professionalize the customs broker? Ra 9280
13. What is the law that amends certain provisions of ra 9280, such as customs broker will be used by exporter
as an optional for the usage at their signature in export declaration? Ra 9853
14. How many units are the minimum that the school may offer under bsca in ched memo 30-s2021 for the
whole gen ed? 50 units
 15. How many units are the minimum that the school may offer under bsca in ched memo 30-s2021? 145 units
16. What is the ched memo for bsca? Ched memo 11-s2005
17. What is the law that the phils agreed in countervailing act initiated by wto? Ra 8751
18. How many units are the minimum that the school may offer under bsca in ched memo 30-s2021 for special
business education? 18 units
19. What is the law that the philippines adopted from the wto/wco customs valuation standard and added a post
entry audit group (peag) at the boc? Ra 9135
20. What is the law for tariff and customs code of the philippines? Ra 1937

PART 2

1. All of them are Purchasing Code of Ethics except one? • Make sure to received benefit by getting kickbacks
without the knowledge of the company.
2. ALL OF THEM ARE DOCUMENTS NEEDED FOR IMPORATION EXCEPT ONE SALES INVOICE
3. Track the physical status of goods, the management of materials, and financial information involving all
parties. EXECUTION APPLICATION
4. All of them are below the supplier evaluation list except one? Exclude the company profile
5. __________ are used by manufacturers, exporters, wholesalers, transport businesses, customs , etc?
Warehouse
6. Electronic ordering: through electronic data interchange (EDI), Emails and Other devices. Blanket Order
7. Track the physical status of goods, the management of materials, and financial information involving all
parties. EXECUTION APPLICATION
8. describes when a company purchases or starts a company that it either buys from or sells to and integrates
this new business into its own. Vertical Integration Strategy
9. All below are RFQ CONTAIN INFORMATION EXCEPT ONE? The Supplier Process
10. A decision to transfer outside because of the law concerning business? Political/legal concerns.
11. the firm buys its own suppliers Backward Vertical Integration
12. the buyer strives to buy its suppliers or to produce its own goods or services previously being purchased
Vertical Integration Strategy
13. being prepared for the negative effects of a natural or human disaster Risk Management
14. promoting procurement best practices of minimizing costs, maximizing quality and ensuring that quality
products are delivered on time. Green Purchasing
15. normally used when there is a recurring need for expendable goods Blanket Order
16. The Objective of E-Commerce Act to facilitate domestic and international dealings, transactions through
electronics, what section in the law you can read this? RA8792 SEC. 3
17. is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific
products or services? Request for Quotation
18. All of them are Common Purchasing Strategies except one? Customer Optimization
19. is only part of Procurement which covers much more work leading to and also after the order has been
placed. PURCHASING
20. If the supplier’s van is unwilling to wait while the contents of the package are inspected, the receiver should
note on the delivery receipt that the condition of the contents is unknown Damage Shipments and Shortages
21. Stockless Purchasing: the supplier maintains the inventory for the purchaser Blanket Order
22. ____________the network of services, material, and information flow that link a firm’s customer relations,
order fulfillment, and supplier relations processes to those of its suppliers and customers. SUPPLY CHAIN
23. In SUPPLY CHAIN MANAGEMENT, A buying in local source only Domestic buying
24. Reduce operating cost and capital investment Effective plant layout Coordinating with government policies
Employee Security, welfare and public needs Objective of selecting suitable site or location
25. means that the less able suppliers who cannot provide a quality service at the terms and prices required are
discarded Supplier Optimization
26. For sole sources:Refrain from sourcing something that is only made by one supplier (such as a
semiconductor supplier) Try to redesign product so that you will have alternatives Risk Management
27. The supplier ensures purchasing best practices using a number of tools such as six sigma. Requiring
Suppliers to Adopt TQM, Total Quality Management Principles
28. the supplier makes the finished products Forward Vertical Integration
29. mutual trust is built up Few Supplier Strategy
30. The _________________________ensures that all vendors who wish to supply are capable of providing
quality goods or services, and have technical, commercial, and financial ability, adequate equipment and
facilities, good service performance, or any other measures that will ensure quality and Vendor Accreditation
Program
31. The procedure for placing an order is complicated such as numerous signatures or authorization. Procedural
problem
32. -
located at some other place, to remove the drawbacks of the present location or to gain the benefits of a still
se and the non renewal. Need for selecting suitable site or location
33. A decision to transfer outside because of the tariff quota? Export or import quotas
34. an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period
of time, sometimes at predetermined prices. Blanket Order
35. business value chain consists of a series of processes or activities conducted by the company to add value
to the existing product or service and to provide a competitive advantage in the market. SUPPLY CHAIN
36. The order is placed on a routing basis. No evaluation of the buying situation Routine Order/Repeat Orders
37. A FINAL AMOUNT OF SHIPMENT, issued by exporter to importer to be used in Bank assessment?
COMMERCIAL INVOICE
38. Any damage to the package, no matter how slight, should be noted on the carrier's and receiver's delivery
receipt. Damage Shipments and Shortages
39. The title of RA 8792 is? E-Commerce Act of the Philippines 2000
40. there is aggressive competition, supplier is held responsible for quality, cost, and delivery competencies as
well as technology, expertise and forecasting abilities Many Supplier Strategy
41. With in the country or outside Selection of the region Selection of locality or community Selection of the exact
site Steps in Location selection
42. With in the country or outside Selection of the region Selection of locality or community Selection of the exact
site Steps in Location selection
43. All of them are Supplier evaluation performance list, except one? Delivered the quality of the Services with
condition
44. In the selection of the region, the materials and manpowers are heavily considered? Availability of
resources(raw materials ,HR)and customers
45. suppliers may support JIT system as well as technological expertise Few Supplier Strategy
46. being concerned with the risk management of supply chain Risk Management
47. to achieve a smoother production flow
48. All below are RFQ CONTAIN INFORMATION EXCEPT ONE The Supplier Process
49. items are purchased under a single purchase order (P.O) rather than processing a separate P.O. each time
supplies are needed. Blanket Order
50. Make sure your suppliers can provide you with an acceptable substitute or give you preference when
demand exceeds supply Risk Management
51. In Supply Chain Management, Sourcing abroad? Importation
52. All of them are samples of PURCHASING CODE OF ETHICS, Except one? Give information to the favorable
supplier
53. is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific
products or services? Request for Quotation
54. __________ is a commercial building for storage of goods? Warehouse
55. All of them are Common Purchasing Strategies except one? Customer Optimization
56. -
located at some other place, to remove the drawbacks of the present location or to gain the benefits of a still
Need for selecting suitable site or location
57. Promise Continued Business in exchange for the quality of products/services they give Vendor
Development
58.
Within the
country or outside
59. All packaging should be carefully examined for any visible evidence of damage, particularly if the purchase is
fragile or costly. Receiving Purchase Goods Guidelines
60. - Lower acquisition - Preservation of supplier promise - Inadequate Production capacity - Inventory
cost can be reduced Purchase
61. This model tries to explain that decision making process is carried out by individuals, in interaction with other
people, in the context of a formal organization, which in turn is influenced by a variety of sources in the
environment. Buy Class Characteristics
62. Work Together to Focus Understanding offer to help them and work together in order to get that product
done correctly and on time. Vendor Development
63. What is the EXECUTIVE ORDER for BOARD OF INVESTMENT? EO 226
64. The functions inside and outside a company that enable the value chain to make products and provide
services to the customer • Definition OF SCM
65. A decision to transfer outside because the different culture that cannot be assimilated? Cultural issues
66. This framework establishes critical decision points in the purchase process. More specifically, as the buyer
moves from stage one to eight, his/her commitment to suppliers currently on the list increases Buy Grid
Framework
67. The _________________________ensures that all vendors who wish to supply are capable of providing
quality goods or services, and have technical, commercial, and financial ability, adequate equipment and
facilities, good service performance, or any other measures that will ensure quality and reliability in every
purchase made. Vendor Accreditation Program
68. All of them are PURCHASING RESPONSIBILITIES, EXCEPT ONE? Give overall SCM input and output
69. Vendors are required to provide increasing quality service with zero or minimum defects? Requiring
Suppliers to Adopt TQM, Total Quality Management Principles
70. - Lower Production cost - Incompatible suppliers - Assurance of quality of materials - Protection
of design - Increase profit margin Produce
71. this strategy supports the need for recycling and purchasing products that can reduce the negative impact on
the environment. Green Purchasing
72. The items delivered must be checked against the invoice to make sure that the quantities received are the
same as the quantities being invoiced. Receiving Purchase Goods Guidelines
73. Leverage Relationships with Suppliers to eliminate risk and gain protection in a crisis Risk Management
74. AN INITIAL AMOUNT OF SHIPMENT, issued by exporter to importer to be used in Bank assessment?
PROFORMA INVOICE
75. Work Together on Specifications and other details Vendor Development
 76. Reduce operating cost and capital investment Effective plant layout Coordinating with government policies
Employee Security, welfare and public needs Objective of selecting suitable site or location
77. Only one supplier for all units of a certain product Blanket Order
78. business value chain consists of a series of processes or activities conducted by the company to add value
to the existing product or service and to provide a competitive advantage in the market SUPPLY CHAIN
79. allows suppliers to lower their production costs and transaction costs Few Supplier Strategy
80. Standardization: standardizing components such as labeling, coloring, packaging by purchasing company
Blanket Order
81. the supplier responds to the demands and specifications for a request for quotation, with the order going
usually to the lowest bidder Many Supplier Strategy
82. A NON FISCAL INCENTIVES FOR BENEFITS OF BOI, except one? Privilege to operate a PRIVATE
WAREHOUSE
83.
Selection of locality or community
84. Domestic OR International Which country? And the decision is taken on th
Within the
country or outside
85. Nurture a Relationship Vendor Development
86. if the supplier is unable to perform to the required standards, the purchaser may assist the vendor in
improving their service Vendor Development
87. Sourcing from many vendors, other than local ones, regardless of their country of origin Global Sourcing
88. results in long-term relationship with suppliers Few Supplier Strategy
89. an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period
of time, sometimes at predetermined prices. Blanket Order
90. developing processes that assist the vendors Vendor Development
91. A decision to transfer outside because of big gap in the money currency? Currency exchange rate

PART 3

1. A procurement practice that: Is initiated by a request for proposals, setting out the
organization’srequirements and criteria for proposal evaluation; Contemplates the submission of timely
proposals by the maximum number of possible suppliers; Usually provides for discussion with those
suppliers found to be within the competitive range; Concludes with the award of a contract to the one supplier
whoseproposal is most advantageous to the organization, consideringprice and the other factors included in
the solicitation. Competitive Proposal
2. The 3RD step in bidding for government services or supplying a product is? SUBMISSION OF BIDS
3. is the process of which the two parties arrive at an arrangement which satisfies them both Negotiation
4. Refers to the acquisition of goods, consulting services, and contracting for infrastructure projects by
procuring entity? PROCUREMENT
5. What is the law for Government Procurement? RA 9184
6. Step 7 in Procurement Risk Management Program Steps? Measuring overall risk exposure level, taking into
account the maturity of the market, complexity of the solution, etc.
7. is the process of discussion between the parties to a contract to finalize the terms of the contract Contract
Negotiation
8. The structure, content and method of managing the information before, during and after submission of the
bid should be guided by the principles of ethical and fair sourcing practice and organizational policy. The
buyer should understand the business culture and should be aware that some forms of bidding may not be
 appropriate in all places. Generally accepted in RFPs; not allowed in Invitation forBids (IFB). ALTERNATIVE
AND INNOVATIVE PROPOSAL
9. Likely to be used when both parties have a high degree of concern for their own and the other’s outcomes. •
Example: negotiations between partners, and negotiation where buyer and supplier want to do business with
each other. Win Win or Cooperational
10. Achieving consensus within the respective organizations.Bargaining teams (especially union teams) are not
always united.Political rivalries.Diverse constituencies.Resolving internal disputes before the negotiations
begin is critical Intraorganizational Bargaining
11. This should take place well before taking any purchasing action. PROCUREMENT PLANNING
12. All below are PREPARATION bidding documents following the standard of GPPB, except one? Get a
clearance from from LGU
13. The action or Occupation of acquiring military equipment and supplies? Defense Procurement
14. All of them are Stages of Collective Bargaining, Except one? Delivery
15. Individuals are assigned to draft proposals for specific parts of the CBA. Timetables for negotiations are
established. Coordination Stage
16. a reliable estimate of amount and timing of demand. DEMAND FORECAST
17. The action obtaining or buying something “financial assistance for the government procurement of legal
advice “PROCUREMENT
18. the inventory level of an item when next order should be placed RE-ORDER POINT
19. Is used when orders must be placed at fixed time intervals (weekly, twice a month, etc.) The timing of orders
is set FIXED ORDER INTERVAL MODEL
20. All of them are bargaining sub processes, except one? Delivered Bargaining
21. What law governs the Electronics Transactions in the Philippines? RA 8792
22. If you say Competitive bidding in Government procurement? Lowest Price but with Highest Quality
23. The second step of Government procurement is? Procurement Department for Review, Research, and
Planning
24. An act providing for the Modernization, Regulation, Standardization of the procurement activities government
and for other purposes? RA 9184
25. All potential bidders should be invited to the pre bid conference. A bidder should not be invited if the buying
organization has no intention of doing business with that supplier. If a conference results in changes to the
solicitation, the organization issues a written amendment to the solicitation. Selection of participant
26. The title of RA 8792 is? E-Commerce Act of the Philippines 2000
27. Sourcing team meets with all the potential suppliers. Topics for discussion include blueprints and
specifications, SOWs, quotation due dates, terms and conditions of quotations, proposal evaluation criteria,
delivery schedules and materials, releasing procedures, invoicing procedures and documentation, and other
requirements. How to arrange and conduct
28. Is conducting the negotiation through electronic means? E-Negotiations
29. It establishes a forum for two way communication between the buying organization and the supplier to
discuss details of the RFx package at the beginning of the bid process. By meeting in an open forum, the
organization will quickly learn of any discrepancies or errors in the bid package (which should be made as an
addendum to the bid package) thus expediting the bid process. Potential Benefits
30. All of them are activities at the NATIONAL, except one? Union will not accept any counter proposal
31. The first step in bidding for government services or supplying a product is? PRE PROCUREMENT
SERVICES
32. length of time orders shall be delivered; the time between the placement and receipt of an order LEAD TIME
33. The first step of Government procurement is? Department Requisition Slip and Order
34. Used when inadequate specifications preclude the initial use of competitive bidding. The first step: bids are
requested only for the technical proposals without any prices. The second step: bids are sent only to those
 suppliers that submitted acceptable technical proposals, asking those suppliers to submit an updated bid with
pricing.Pre qualified bidding•Bids are solicited only from those organizations that have alreadybeen shown to
meet the minimum requirements of yourorganization.•The bidding process is not open to others in the supply
base. Two step bidding
35. One of the principle of government procurement that the leader and its personnel will take the responsibility
of anything bad happen on the project? Accountability
36. provides a mechanism for discriminating between the components of the total purchasing requirements
whether goods, works or services, and a tool for developing specific strategies to meet the needs of the
organization with respect to each group of purchases. Supply Positioning
37. One of the principle of government procurement wherein everyone, everybody, everything can be seen on
the transaction of procurement? Transparency
38. All of them are objectives of Negotiation except one? To reject all bidders and Find another one
39. A sealed bid is a bid that has been submitted in a sealed envelope to prevent its contents from being
revealed or known before the deadline for submission and opening of all bids. Formal advertising is
frequently used for the procurement of services such as building or maintenance contracts, construction and
equipment, selling of scrap and surplus. Sealed Bids/Formal Advertising
40. The law that governs amazon, buy.com, ebay, shoppee, LAZADA, ZALORA in the Phils? RA 8792
41. Step 8 in Procurement Risk Management Program Steps Assigning a monetary value to the potential impact
of each risk event (e.g., margin at risk, cost of lost productivity, cost of schedule changes.
42. takes root in more businesses, executives are thinking more broadly about the risks their company faces.
Many of the most significant ones are driven by relationships with other entities, such as service providers,
alliances and joint ventures Integrated Vies Risk
43. Step 2 in Procurement Risk Management Program Steps? Gathering the data needed to manage the
process (e.g., supplier spend levels, performance data, price & cost trends, demand forecasts, upcoming
contractual milestones).
44. The formula of ECONOMIC ORDER QUANTITY is? no. of mos. supply desired x Ave usage
45. Lots are structured to increase cost reduction opportunities. Buyer can develop lot bidding rules requiring
suppliers to: Bid on all lots; Bid on only the lots that the supplier can provide; Or allowing suppliers to
structure their own lots to maximize their efficiencies. Lotting Strategies (Online Bidding)
46. The 5TH step in bidding for government services or supplying a product is? OPENING OF 2ND ENVELOPE
(Financial Proposal)
47. Refers to telephone, written or electronics quotations whose monetary value are less than pre-established
monetary limit? Informal Bid/Quotation
48. The sixth step of Government procurement is? Department of Budget Management (DBM) will send to COA
and Ombudsman