Small Dollar Value Purchase Orders for MRO Can Be Efficiently

question 7

Multiple Choice

Small dollar value purchase orders for MRO can be efficiently and effectively managed by:

• A)increasing the number of customized items.
• B)implementing a vendor- or supplier-managed inventory system.
• C)putting purchases on separate purchase orders.
• D)entering into contracts for each item.
• E)giving buyers unlimited access to petty cash.

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Definitions:

Perception

Process of experiencing the world and making sense out of what you experience.

Halo Effect

The phenomenon where a positive impression in one area influences one's perception in other areas.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or end.

Horn Effect

A cognitive bias causing negative traits or experiences with an individual to influence overall perception of them disproportionally.