Procurement Mock Exam

Which term refers to the total lifetime cost of acquiring, operating, and disposing of a product?

• Price Analysis

• TCO

• Reverse Auction

• Value Analysis

What is one benefit of a Buy-Side e-procurement model?

• Controlled by the supplier

• Promotes price secrecy

• Centralized control by the buyer

• No integration with ERP

A company outsourcing cleaning services to a specialist provider is an example of:

• Forward integration

• Tactical outsourcing

• Reverse logistics

• Vertical integration

In the supplier partnering hierarchy, the stage where suppliers and buyers exchange best practices is:

• Stage 1

• Stage 2

• Stage 5

• Stage 6

Which of the following is a feature of open innovation in supplier relationships?

• Internal-only product development

• Outsourcing with limited collaboration

• Leveraging external knowledge sources

• Exclusive partnerships

In cost-based pricing, which method uses a fixed percentage markup on cost?

• Target pricing

• Value pricing

• Cost-plus pricing

• Incentive pricing

Which of the following supports sustainability in procurement?

• Selecting suppliers solely based on lowest price

• Using reverse auctions for every contract

• Sourcing from certified ethical suppliers

• Ignoring social responsibility to reduce costs

One disadvantage of a Marketplace model is:

• Limited access to multiple suppliers

• Price visibility to all participants

• Low entry cost

• Lack of control over the supply chain

Which step comes first in the supplier evaluation process?

• Identify potential supply sources

• Determine sourcing requirements

• Recognize the need

• Select final suppliers

What is a key reason for applying Kraljic’s Matrix in sourcing strategy?

• To reduce total procurement costs

• To standardize quality control

• To identify buyer-supplier relationships

• To classify purchases by risk and impact