Market based pricing model include: *

E. Promotional

B. Market share

G. Only A, D and E

C. Skimming

A. Price volume

D. Current revenue

F. All of the above

A quality system is defined as the organisational structure, responsibilities, procedures, processes and resources for implementing quality management. *

A) True

B) False

Buyers post-contract award considerations (price) includes all except for: *

D. Termination costs

C. Claims for extras

E. Continuous improvement obligations

B. Networking within procurement profession

A. Indexation methodology

Facets of price to be analysed includes: What constitutes material costs? What is the level of profit being sought? Has a contingency provision been included? *

B) False

A) True

Skills of a contract manager include all except: *

E. Decision making

D. Communication

A. Leadership

C. Risk management

F. Relationship management

B. Negotiation

Student Name *

Key considerations on Project risk management are: *

C. Determine the risk reporting processes

D. Monitor all risks on a regular basis throughout the project life

E. All of the above

A. Conduct a project risk assessment to identify, assess, prioritise and agree actions required to manage high-risk issues

B. Identify business critical risk issues

F. Only B,C and D

Conditions that prevent spontaneous response in negotiation include all except: *

C. Buyer is in a monopolistic position

B. When they are held accountable for their performance

A. When there is little latitude in determining their position or posture

D. When they are responsible to a constituency present in the negotiations

Aims of inventory management include all except : *

E. Provide upstream and downstream inventory visibility in the supply chain

B. Ascertain present and future requirements for all types of inventory to avoid overstocking

D. Keep stocks to a minimum by variety reduction

C. Elimination of costly overstocking or under stocking

A. Provide internal and external customers with required service levels at optimum cost

Quality loop in Producer /supplier side includes all except for : *

B. Process planning and development

C. Technical assistance and maintenance

E. Procurement

D. Production

A. Design/specification engineering and product development

Category management is a strategic approach which organises procurement resources to focus on specific areas of spends. This enables category managers to focus their time and conduct in depth market analysis to fully leverage their procurement decisions on behalf of the whole organisation. The results can be significantly greater than traditional transactional based purchasing methods. *

B) False

A) True

Student ID *

Your answer

Why procurement research is important? *

E. All of the above

D. Focus on partnering

B. Procurement done in conditions of uncertainty

C. Increased use of outsourcing

F. Only A, B and C

A. Rapid changes in technology and economic circumstances

Sourcing is the process of identifying, selecting and developing suppliers, what are first five of the sourcing process based on sequence ? *

A. 1.Identify needs,2.Decide to make or buy, 3.Define requirements, 4.Identify type of purchase, 5.Conduct market analysis

B. 1.Identify needs, 2.Define requirements, 3.Decide to make or buy, 4.Identify type of purchase, 5.Conduct market analysis

C. 1.Identify needs, 2.Conduct market analysis, 3.Decide to make or buy, 4.Identify type of purchase, 5.Define requirements

D. 1.Identify needs, 2.Conduct market analysis, 3.Decide to make or buy, 4.Define requirements, 5.Identify type of purchase

Key performance indicators for inventory includes all except: *

A. Lead times defined and managed

B. Service levels

C. Rate of stock turn

D. Stockouts in a given period

E. The demand for the final product

F. Stock cover, e.g. days of cover per stock keeping unit (SKU)

Buying outside the firms country of manufacture in such a way that does not coordinate requirements among world-wide business units of a single firm includes all except for. *

C. Multinational sourcing

B. Strategic global sourcing

A. International sourcing

D. Foreign sourcing

Capital equipment procurement differs from that of materials and components because cost per item is usually greater, the equipment facilitates production and it is financed with long-term capital *

A) True

B) False

Drivers for buying from overseas Brian Farrington Limited includes all except: *

D. Manufacturing flexibility

C. Pressure to reduce costs

B. Logistics support for longer supply links

A. Requirement for offsets

What are the essential considerations of specifications/standards in contract management? *

D. What happens when service/product fails acceptance testing?

E. All of the above

C. What is the testing regime?

B. How will performance be measured?

F. Only, C and D

A. Understanding the precise wording

Categories of capital equipment include: *

E. Furnishings and fittings

D. Tools and instruments

B. Operating equipment

A. Buildings

C. Accessory equipment

F. All of the above

G. Only A, B and C

Contractually related negotiation issues include: *

A. Liability of subcontractors

E. All of the above

D. Payments in advance

C. Changes to specifications and designs

B. Ownership of jigs, tools, moulds, etc.

Factors influencing the supply base include all except: *

A. The range of purchases

B. The core competences of the buying organisation

C. Potential lead time reduction

D. Supply chain risks

World Bank procurement violations include: *

E. Fraud in contract performance

A. Contract irregularities and violations of the Banks procurement guidelines

F. All of the above

C. Collusion by bidders

D. Fraudulent bids

B. Bid rigging

Quality loop in Customer /consumer side includes all except : *

B. Installation and operation

D. Technical assistance and maintenance

E. Marketing and market research

C. Inspection, testing and examination

A. Sales and distribution

Examples of auditing purchases, suppliers and prices includes all except : *

C. Who are principal suppliers?

B. What are principal purchases?

A. Respect for the legitimate authority of others

D. What attempts have been made to achieve single and partnership sourcing?

Why it is important to sourcing? *

C. Indicates what alternative goods and supply sources are available

A. Helps in forecasting long-term demand for a product

E. Only A and B

B. Helps in forecasting price trends of bought-out items

D. All of the above

The buyers negotiation position will not be strong if: *

D. Make and buy options are available

B. Suppliers are keen for the business

A. Demand is not urgent

C. Demand can be met by alternatives/substitutes

Typical project management issues includes : *

C. No realistic or complete project budget

B. No comprehensive list of risks

A. No defined goals or requirements

D. Contracts did not include penalty clauses

E. All of the above

Pre-negotiation considerations include all except: *

C. The venue

E. Negotiation objectives

D. Intelligence gathering

F. Strategy

B. Agreement of common goals

A. Who is to negotiate?

Buyers actions pre-tender (price) includes all except for: *

D. Contract change notice management

C. Parametric estimating

B. Conventional estimating

A. Soft market testing

What are the benefits of barcoding ? *

B. Greater accuracy

C. Reduced labour costs

G. Only A,B,C and E

F. All of the above

E. Faster access to information

D. Better decision making

Roles of a contract manager include: *

F. Apply seniority to influence supplier behaviour

E. Conduct contract review meetings

H. Only B,C,D and F

D. Deal with contract change

G. All of the above

C. Regularly review the risk register

A. Empowered to make decisions

B. Communicate to stakeholders

Supplier evaluation factors includes all except: *

A. Quality and process control

B. Continuous improvement

C. Facility environment

D. Customer relationship

E. Locating supplier sources

Knowledge of a contract manager includes all except: *

C. Dispute resolution

A. Partnering

B. Team working

D. Specifications

Which item is not a talent challenges related to category and commodity procurement? *

B. Timing of entry into the market

C. Installation equipment

A. Excellent technical understanding of the category

D. Impacts on the suppliers pricing decisions

E. Defining the contractual detail

Advantages of traditional procurement includes all except : *

A. Client determines quality

C. Client carries a lot of risk

B. Tendering process is competitive

E. Comparable in programme to design and build

D. Tendering costs lower

Challenges to international sourcing (Birou and Fawcett 1993) include: *

F. Only B, C and D

E. All of the above

D. Duty and customs regulations

B. Finding qualified foreign sources

A. JIT sourcing requirements

C. Culture and language differences

In world-class procurement to enhance business performance, you should have special design considerations this includes all except : *

D. Ensure planned product life is most appropriate in environmental terms

B. Minimise pollution from chosen materials

E. Give account to end-disposal of the product

C. Put rigorous risk assessment process in place

A. Increase efficiency and economy in the use of materials, energy and other resources

TQM important principles include: *

B. Eliminating the need to prepare company specifications

D. Recognition of the importance of implementing a system to provide information to managers about quality processes that enable them to plan, control and evaluate performance

C. A recognition that personnel at all levels share responsibility for product quality

A. A focus on product improvement from the customers viewpoint

E. A, B, and C

F. A,C , and D

International purchasing is the coordination and integration of procurement requirements across world-wide business units, looking at common items, processes, techniques and suppliers. *

B) False

A) True

Design and build disadvantages includes: *

C. Contractor can increase profit by reducing costs that could impact on quality

B. Changes to scope can be costly

E. All of the above

D. Mobilisation includes a design period

F. Only A, C and D

A. Contractor controls quality

Reasons for keeping inventory include: *

F. Only A, B and C

E. All of the above

C. Meet unexpected demands

D. Smooth seasonal or cyclical demand

B. Protection against lead-time uncertainties

A. Reduce the risk of supplier failure