Purchase Planner Interview Preparation Guide
Download PDF
Add New Question

Purchase Planner job related Frequently Asked Questions by expert members with experience in Purchase Planning. These questions and answers will help you strengthen your technical skills, prepare for the new job test and quickly revise the concepts

32 Purchase Planner Questions and Answers:

1 :: How to calculate inventory turns?

Inventory turns is the annual cost of the inventory issued divided by the average monthly inventory value.
The average monthly inventory value is calculated by adding the past 12 monthly inventory values and dividing the total by 12. At the end of each subsequent month, add the latest month's inventory value and delete the 12th most distant monthly inventory value.

The annual cost of issues is calculated by adding the past 12 monthly cost of inventory issues. At the end of each subsequent month, add the latest month's cost of inventory issues and delete the 12th most distant month.
Example: Annual Cost of Issues/ Average Monthly Inventory Value = Inventory Turns $400,000/$100,000 = 4.0 Turns.
Post Your Answer

2 :: How purchasers find their suppliers. Are there favorite places they look?

A prime source for finding new suppliers is the XYZ Register. The XYZ Register lists manufacturers by product categories and geographic location. XYZ Register supplier information can be obtained online from their website (its free), a set of their cds which can be networked within a company, and their set of catalogs. Another good source for finding suppliers is through Trade Associations, most can be accessed online. Internet search engines such as google.com which can be used to search for specific products, commodities or companies.
Post Your Answer

3 :: Explain the difference between counter trade & reciprocal trading?

Cash poor countries and organizations engage in counter trading by exchanging commodities of equal value. Counter trading offers cash poor countries and organizations greater access to the world markets by offering them an alternate method of acquiring goods. 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.
Post Your Answer

4 :: When contacting supplier references, which are the questions should I ask that will elicit worthy information about the vendor?

When checking supplier references, you need to collect as much information as possible to help you make a wise decision. You should interview at least three references and engage them in conversation. Verify all the information you already have about the supplier. Find out the scope of the project and how long the contract was for.
Post Your Answer

5 :: Tell me whose terms and conditions govern when a supplier sends a buyer their terms and conditions after buyer phones in an order, fails to send purchase order to supplier and accepts delivery?

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

6 :: List some questions that could help to make informative decision for Purchase Planner?

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?
Post Your Answer

7 :: Give me layman's interpretation of what is a CPM is in internet online advertising?

CPM (Cost Per Impressions) is the cost per thousand a web site charges for an advertisement on a web site page. Internet advertising is typically sold on a CPM basis. An impression occurs when a visitor to a web site views a page where an ad is displayed. A $25 cpm rate represents $25 per 1,000 displays of a web site page where an ad is displayed.
Post Your Answer

8 :: Tell me is a contract that does not state any particular quantity valid?

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.
Post Your Answer

9 :: Can a shipment be rejected by just simply returning it?

You cannot reject a shipment by just returning it without stating why the shipment is rejected. The UCC states that you must particularize your objections to the goods.
Post Your Answer

10 :: Is a company liable for a purchase order valued at $100,000 placed by a purchasing agent that who has been granted authority only up to $50,000?

Purchasing agents have broad implied or apparent authority. The company would be liable for the $50,000 purchase order.
Post Your Answer
Add New Question