Purchasing and Procurement Flashcards
7 cards from real CEH practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Purchasing and Procurement flashcards as text
Which purchasing practice helps prevent vendor collusion and ensures fair pricing?
Answer: Rotating approved vendors and requiring periodic competitive bids
Rotating vendors and requiring periodic re-bidding prevents any single supplier from becoming complacent and ensures the property continues to receive competitive market pricing.
A 'credit memo' from a vendor is issued when:
Answer: Goods are returned, short-shipped, or an invoice error is corrected in the buyer's favor
A credit memo reduces the amount owed to a vendor, typically issued when goods are returned, damaged, or when an overcharge on an invoice needs to be corrected.
What is the purpose of an 'approved vendor list' (AVL) in housekeeping procurement?
Answer: To pre-qualify and document suppliers who meet the property's standards for quality, reliability, and compliance
An approved vendor list ensures staff only purchase from pre-vetted suppliers who have met quality, safety, and business standards, reducing procurement risk.
When comparing total cost of ownership (TCO) for a piece of housekeeping equipment, which costs should be included?
Answer: Purchase price, maintenance, operating costs, and expected lifespan
Total cost of ownership encompasses all costs over a product's life — purchase, maintenance, energy, repairs, and replacement — giving a more accurate comparison than purchase price alone.
Which best practice helps an executive housekeeper prevent inventory theft and unauthorized use of supplies?
Answer: Implementing a controlled storeroom with access logs and periodic physical counts
Controlled storeroom access with usage logs and physical counts creates accountability, deters theft, and identifies discrepancies between recorded and actual inventory levels.
What does 'economic order quantity' (EOQ) help determine in procurement planning?
Answer: The optimal order quantity that minimizes combined ordering and holding costs
EOQ calculates the ideal order size that balances the cost of placing orders with the cost of holding inventory, minimizing total supply chain expense.
In a 'green purchasing' or sustainable procurement program, which criterion is prioritized when selecting housekeeping products?
Answer: Products with eco-certifications, reduced packaging, or biodegradable formulations
Green purchasing prioritizes products with environmental certifications (such as Green Seal or EPA Safer Choice), reduced packaging, or biodegradable ingredients to minimize the property's environmental footprint.