Exam (elaborations)
CPPB EXAM – DOMAIN VI – STRATEGIC PROCUREMENT PLANNING EXAM
- Course
- Institution
CPPB EXAM – DOMAIN VI – STRATEGIC PROCUREMENT PLANNING EXAM...
[Show more]
Content preview
CPPB EXAM – DOMAIN VI – STRATEGICPROCUREMENT PLANNING EXAM
SWOT analysis is a planning method that evaluates an organization's strengths,
weaknesses, opportunities, and threats.
Pareto Principle - Answer 80% of purchasing costs are generated by 20% of
purchase orders executed.
Spend analysis is the process of gathering, cleansing, classifying, and analyzing
spending data to lower procurement costs, increase efficiency, and monitor
compliance.
procurement profile - ANSWER result created from executing a range of
different analyses on:
- An organization's procurement expenditures
- the variety of commodities and services obtained through procurement (spend
analysis),
-Markets that offer them (market analysis)
-influence of suppliers/entities in the market
-risks inherent in markets
Buying strategy: ANSWER based on demand, market, and supplier evaluate
ons.
should be created for each major category of material intended for purchasing.
,Market research – ANSWER current information to determine the most
effective approach for obtaining, distributing, and sustaining goods and
services.
journals
indexes
Supplier shows
Industry forums,
websites
Conversations with colleagues
forecasting - a tool for determining future needs.
Continuous assessment to explore opportunities is a vital feature of strategic
planning.
Buyers must stay up to date on market trends and surveys, as well as grasp
numerous indicators, business cycles, indices, lead times, and price histories.
affects the timing of spot bids.
The Purchasing Manager's Index (PMI) is an indicator that indicates highs and
lows in the economy.
, Fixed Period Average - ANSWER mathematical calculation used to divide total
usage over a fixed period (usually 12 months), using the most recent fiscal
calendar, by the number of months involved.
The resulting average is forecasted for a comparable future period.
ignores current trends, reflecting ancient patterns rather than the current
direction.
Moving Average approach - ANSWER Continuous average approach for
gathering the most recent usage data.
Always utilizes the most recent data - a 12-month period is the average monthly
usage for the previous 12 months; as the year continues, the forecast is updated
by removing the oldest month and adding the most recent month.
Weighted Moving Average Method - ANSWER emphasizes weighting certain
information, such as seasonal changes.
Mean Absolute Deviation (MAD) is a measure of the total forecast error.
MAD equals the absolute value of errors divided by the number of errors. The
smaller/lower the value of MAD, the more precise the prognosis.
SD - ANSWER Standard deviation
Forecast figures include: - ANSWER, new orders
production
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller luzlinkuz. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now