Essential Purchasing Officer Interview Preparation Guide

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Reciprocal trading provides participating nations with equivalent competitive trading opportunities based on mutual agreements negotiated to adjust tariffs, duties, and customs restrictions in order to increase foreign trade and improve border-to-border relationships among participating countries.

Counter trading offers cash poor countries and organizations greater access to the world markets by offering them an alternate method of acquiring goods.

1. Were you pleased with the work performed?
2. Would you do business with this supplier again?
3. How long have you been doing business with this supplier?
4. What do you like best about the work performed?
5. What do you like the least about this supplier?
6. Is there anything about the work performed that you were not happy with?
7. Was the contract completed on time?
8. Was the supplier helpful and timely when responding to your questions?
9. Were there any unexpected expenses or additional costs unrelated to change orders?
10. Were there any unexpected delays unrelated to change orders?

The supplier's terms and conditions govern because the buyer did not send out the purchase order with his terms and conditions.

When there is a lack of pricing information available to determine price reasonableness, a cost analysis could be performed to evaluate and verify a vendor's cost data and proposed profit.

The continuous process of measuring a company's products, services, costs, and practices against those of competitors or organizations that display "best in class" achievements.

The term "and/or" should not be used in agreements. Ambiguity arises when this term is used because of the many possible variations this term can create. It is more exact to use the terms "and" and "or" separately. The term "and" means both, the term "or" means either.

A bidding procedure usually consisting of two competitive steps. Step one consists of a technical proposal for furnishing the product or service and the second step consists of a comparison of costs. Bidding then proceeds as in conventional sealed bid procedures.

Purchasing cards are a purchasing tool many progressive companies use to purchase and pay for low dollar purchases. Purchasing cards reduce the cost of doing business while preserving purchasing controls.

Life cycle costing is the total cost of purchasing, operating, maintaining, supporting and disposing of a product.

A method used to calculate inventory turns is to divide the average inventory level into the annual cost of goods.

The procurement process by which a bid is submitted in a sealed envelope to prevent disclosure of its contents before the deadline for the submission of all bids.

A warehouse operated under U.S. Customs supervision to store imported goods.

Inventories represent a sizable investment for businesses. The higher the inventory turns, the lower the inventory carrying costs.

You can use cycle counts on a cyclic schedule rather than taking physical inventories. The most effective cycle counts are those conducted on a daily basis.

Risk of loss passes to the buyer when the goods are delivered at the buyer's plant.

Under the UCC good faith means honesty in fact in the conduct or transactions concerned.

Requirements contracts must be awarded in good faith. In this case, the courts will determine that those contracts were executed in bad faith and neither vendor will be bound by their contract.

A small business which is owned or controlled by a majority of persons, not limited to members of minority groups, who have been deprived of the opportunity to develop and maintain a competitive position in the economy because of social disadvantages.

An unsigned purchase order is valid. The company logo on the purchase order is considered as the signature.

The word shall denotes the imperative and the word may denotes the permissive.

Under this type of contract, a contractor is reimbursed for costs allowed under the contract terms.

The statute of limitations under the UCCC is generally four years. In certain cases, the UCC allows the statute of limitations to be reduced to a one-year minimum.

Purchasing agents have broad implied or apparent authority. The company would be liable for the $50,000 purchase order.

The Uniform Commercial Code (UCC) allows for the award of requirements contracts, which do not state any particular quantity. However, a requirements contract is only valid if the contract is awarded in "good faith." Sellers will normally ask for the contract to have an estimated quantity or a quantity range.