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A document that authorizes a supplier to deliver a product or service is known asa purchase order. _______________ is used when requirements are well understood and there is common agreement between supply chain partners about what certain terms mean. Description by market grade"Earnings over total assets" is the definition ofreturn on assets(ROA)."The application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement" is the definition ofspend analysis.Electra Company is looking to award a new contract for 500,000 integrated circuit boards. The table below summarizes the expected performance of three possible suppliers with regard to price, quality, and delivery. Calculate the weighted performance score for the three possible suppliers, using the weights provided below. What supplier should Electra choose, based on these results?The weighted performance score for Aardvark Electronics is 2.6The weighted performance score for Beverly Hills Inc. is 3.0The weighted performance score for Conan the Electrician is 3.6Electra should choose Conan the ElectricianA company elects to use portfolio analysis to conduct their sourcing strategy. They decide to begin this arduous process with Post-it® notes because they are used in every office and at every workstation in the building.Where would this item likely fall?routine quadrant_______________ is the purchased cost of goods from outside suppliers.
Cost of goods sold(COGS)_______________ are terms and conditions for a purchased service that indicate, among other things, what services will be performed and how the service provider will be evaluated. Statements of work(SOW)_______________ is used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's products or services. Description by brandCommunicating your needs can be difficult when purchasing services. The documentthat communicates this need is called astatement of work._______________ holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax profits by only $1 multiplied by the pretax profit margin.