Mock Exam

Which pricing approach involves analyzing every cost component to determine value fairness?

• Total Cost of Ownership

• Value Analysis

• Reverse Auction

• Cost Breakdown Analysis

Which of the following best describes a reverse auction?

• One seller, many buyers with increasing prices

• One buyer, many sellers competing by lowering prices

• Many sellers with fixed price offers

• Single source negotiation only

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

Which pricing model includes a fixed profit margin over actual production costs?

• Firm Fixed Price

• Cost-Reimbursable

• Incentive Pricing

• Cost-Plus Pricing

What is the Triple Bottom Line in sustainable procurement?

• People, Products, Performance

• Price, Place, Promotion

• People, Planet, Profit

• Procurement, Packaging, Promotion

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

What is the purpose of using the Kraljic Matrix in procurement?

• To track supplier payments

• To assess internal procurement skills

• To classify procurement items by risk and impact

• To calculate inventory turnover ratio

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