SECTION B: MULTIPLE CHOICE QUESTIONS. There are 15 questions and choose the correct answer.

1) The following are procurement activity, except:

A) Establish Specifications

B) Select Suppliers

C) Manage Customers

D) Monitor Supplier Performance

2) Which are the 3 key factors in selecting a supplier?

A) Suppliers manufacturing capability

B) Suppliers reliability

C) Suppliers price

D) All of the above

4) The following is a common purchasing administration activity:

A) Total acquisition costs analysis

B) Preparing purchase orders

C) Make and buy analysis

D) Global Sourcing

5) One of the key reasons for selecting multiple/many suppliers is:

A) Having flexibility of supply in case of interruption

B) Easier to forge long term relationship with multiple suppliers

C) It is easy to integrate your systems with many suppliers

D) It is possible to set up joint ventures with multiple suppliers

6) Which of the following could be a negative impact of global sourcing?

A) Achieving cost and efficiency through lower overall cost

B) Improve value through new product introduction

C) Unknown impact on long term demand and supply

D) All of the above

7) Which of the following is an operational performance measurement of a supplier?

A) Quality of product delivered.

B) On time delivery of product delivered

C) Cost of product delivered

D) All of the above

8) One of the core tasks of a category manager is to perform the following:

A) Conduct spend analysis

B) Conduct product quality analysis

C) Customer analysis

D) Financial ratio analysis

9) Which of the following is an aspect of category management process?

A) Continuous engagement among all stakeholders to ensure everyone is in line with the organizations purchasing decisions.

B) Releasing purchase orders and follow up deliveries

C) Arranging for transport from suppliers location

D) None of the above

10) What is the reason for a company to choose a MAKE decision?

A) Protect proprietary technology

B) Better quality control

C) Control of lead-time transportation, and warehousing cost

D) All of the above

11) What is the reason for a company to choose a BUY decision?

A) No competent supplier

B) To plan production

C) Cost advantage

D) None of the above

12) The following are the challenges of global sourcing, except:

A) Skill and knowledge to deal with international suppliers

B) Managing logistics complexity

C) Managing political uncertainty of suppliers

D) Shorter lead times

13) A procurement contract is:

A) sellers pricing and selling condition

B) a written agreement between a buyer and a seller

C) a request from buyer to purchase products

D) All of the above

14) Supplier relationship management (SRM) is the systematic approach to:

A) Eliminating suppliers so that it reduces workload for purchasing staff

B) Buying products and services from the first available vendor

C) Management of suppliers and determining their contribution to companys success

D) Creating a network of customers for the suppliers

15) Which reflects the appropriate definition of the following concepts:

A) Purchase order processing refers to administrative activity of purchasing

B) Procurement activity refers purchasing transaction including materials management

C) Sourcing activity refers to cooperating internally and externally to procure materials

D) All of the above