answer the questions below, just options needed, only for theory questions explanation is needed in detail:-

1._________________________ are concerned with the scope or boundaries of each business and the links with corporate strategy and the basis on which the business unit will achieve and maintain a competitive advantage within an industry.

Select one:

a. Business Unit Strategies

b. Supply Management Strategies

c. Commodity Strategies

d. Corporate Strategies

2.At its most basic level, ______________________ is about bundling items. The central driver behind this method is to simplify demand and take a bigger contract to the market. The greater the scale, the lower the unit price.

Select one:

a. supplier management

b. cost management

c. category management

d. TCO analysis

3.Cost __________ informs us what determines the total costs. For example, general transportation cost is cost element but ocean transportation, land transportation, air transportation are cost__________.

Select one:

a. variables

b. points

c. reasons

d. drivers

4.Costs related to the size of the facility therefore production size, it is related to very basic economic rule. ___________________________ the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Select one:

a. economies of scale

b. category management

c. supplier management

d. inventory management

5.Examples of activities within the _____________________ process include product/service sourcing, supplier selection, price negotiation, contract management, transaction management, and supplier performance management.

Select one:

a. SCM

b. VMI

c. SRM

d. procurement

6.For a PVC product, we are currently paying $20 per hundred items, under a 5-year contract we signed in January, 2016. At that time, we believed the price was reasonable. The supplier recently has contacted us, requesting a price increase to $24 per hundred items, citing a 20% increase in labor wages in Ontario at 2017 January. According to our research in our supplier's industry labor cost percentage is only 30% of total cost. What is should be fair price for hundred products?

Select one:

a. 22

b. 21.2

c. 24

d. 22.2

7.In the supplier selection criteria; these factors indicate the supplier's ability to provide a needed quality and quantity of material in a timely manner.

Select one:

a. sustainability

b. capability

c. reliability

d. flexibility

8.____________________________ is an estimate of all direct and indirect costs associated with a product/service along it's lifecycle.

Select one:

a. TQM

b. TTC

c. SCM

d. TCO

9.______________________is a tool used in mathematical modeling to analyze how the different values of a set of independent variables affect a specific dependent variable under certain specific conditions.

Select one:

a. Optimisation Analysis

b. Correlation Analysis

c. Sensitivity Analysis

d. Spend Analysis

10.Last year we purchased $ 240,000 worth of material from our aluminum profile supplier. Because of the late delivery, return to supplier, scrap, and material rework we spent $24,000 extra money last year. What is the supplier performance index (SPI) value for this supplier?

Select one:

a. 1.0

b. 0.9

c. 1.2

d. 1.1

SPI (Supplier performance index) Calculation

= (Total Purchases + Nonperformance Costs) / Total Purchases

11.Several methods are widely used for obtaining price; which of the following is NOT one of them?

Select one:

a. By negotiation

b. A price list is made available

c. Prices are quoted on request

d. Using Porter's five forces

12.Standard A4 paper is an example of __________ purchasing department can buy any supplier without making detailed supplier evaluation.

Select one:

a. criticals

b. distinctives

c. generics

d. commodities

13.Steel is an example product of __________ what item is described as low risk, high value.

Select one:

a. commodities

b. distinctives

c. generics

d. criticals

14.The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called

Select one:

a. total landed cost

b. purchase/acquisition cost

c. strategic sourcing costs

d. life cycle costs

15.Time-definite and on-time deliveries are among the top-ranked factors relating to __________. The importance relates to avoiding production line shutdowns, unavailability of finished products due to lack of materials, and ultimately to successfully fulfill customers' orders in the marketplace.

Select one:

a. capability

b. sustainability

c. flexibility

d. reliability

16.Under the types of purchasing activity; __________ that may represent a longer-term investment for an organization that may require significant financial planning.

Select one:

a. Capital Goods

b. MRO

c. Re-Buy

d. Education

17.Wage rate differences and transportation costs which are two main cost drivers related to __________.

Select one:

a. operations

b. design

c. geography

d. facility

18. We are producing bottled yogurt & fruit juice blend and we are buying bottles from our supplier. We are currently paying $15.00 per hundred bottles, under a 5-year contract we signed in January, 2017. The supplier recently has contacted us, requesting a price increase to $18.00 per hundred bottles, citing a 20% increase in material prices. According to our purchasing department's research for this type of bottles, direct material cost has 40% share in total cost. What should be new price for hundred bottles?

Select one:

a. $18.00

b. $16.80

c. $16.00

d. $16.20

19.What vendor selection criteria are described on-time delivery and supply without interrupt?

Select one:

a. capability

b. quality

c. reliability

d. financial

20. Which of the following cost is NOT one of the cost components related to transaction phase?

Select one:

a. Price

b. Transportation Cost

c. Order Placement

d. Warranty Cost

21. Which of the following is NOT one of the four factors enter into most pricing decisions?

Select one:

a. Value as perceived by customers

b. Lean systems

c. Cost of production

d. Competition and other market considerations

22. Which of the following is NOT one of the models how are prices determined?

Select one:

a. Market-Based Pricing

b. Service-Based Pricing

c. Cost-Based Pricing

d. Value-Based Pricing

23.Which of the following is not one of the possible risks of maintaining fewer suppliers?

Select one:

a. Supply disruption

b. Supplier dependency

c. Absence of competition

d. High Transportation Cost

24.Which of the following is NOT one of the reason organisations needs to make supplier evaluation and selection decisions?

Select one:

a. During new product development

b. At the end of an existing contract

c. Due to poor existing supplier performance

d. At the end of the product life cycle

25. Which of the following is NOT one of the seven Supplier Evaluation and Selection Process step?

Select one:

a. Expand supplier base

b. Recognize the need for supplier selection

c. Determine sourcing strategy

d. Identify potential supply sources

26.Which of the following is not one of the supplier measurement techniques?

Select one:

a. Weighted-point system

b. Location Based System

c. Cost-based system

d. Categorical system

27.Which of the following is NOT one of the three types of buy?

Select one:

a. Capital Goods

b. MRO

c. Re-Buy

d. Technology Products

28. Which of the following is not one of the Types of Supplier Measurement Techniques?

Select one:

a. Categorical system

b. Location-based system

c. Cost-based system

d. Weighted-point system

29.Which of the following is one of the purposes of price and cost management?

Select one:

a. All of the above

b. Develop accurate price/cost information to enhance negotiating effectiveness

c. Input to supplier selection and relationship management processes

d. Identify opportunities for ongoing price/cost improvement

30.Explain what is "Should Cost Model"? Why is the "should cost model" important?

31. Why do we need supplier performance management? What are the four formal approaches to supplier base reduction? Explain briefly.

32. Define the term "learning curve". Explain briefly why learning curve analysis important for strategic purchasing? Give some examples about how learning curve effects cost and price.

33. Explain following two supplier's pricing policy "Cost +" and "Exceptional Seller's (first mover) Position" give some examples.