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150 Qs

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150 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

1. A multinational automotive manufacturer relies on a single supplier for an advanced battery component. The supplier has a monopoly on this technology. How should the company classify and manage this supplier in the Kraljic Matrix?

  • Leverage Item - Engage in aggressive price negotiations

  • Bottleneck Item - Secure supply contracts but seek alternatives

  • Strategic Item - Develop a long-term partnership with supplier collaboration

  • Non-Critical Item - Maintain a transactional relationship

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

3. A tech startup is looking for a logistics supplier to handle global distribution. What key metric should be considered in supplier evaluation?

  • Supplier's advertising reach

  • On-time delivery performance

  • Number of warehouses owned by the supplier

  • Total number of clients the supplier serves

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

2. What is one drawback of outsourcing?

  • It invariably results in an increase in both fixed and recurrent costs.

  • It cannot increase accountability of suppliers through a written contract.

  • It does not provide access to specific skills or technologies.

  • It can make an organization lack of management skills to control suppliers.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which is true about outsourcing and sub-contracting?

  • Sub-contracting is a tactical, short-term approach whereas outsourcing is a strategic long-term decision.

  • "Sub-contracting is a tactical, short-term approach whereas outsourcing is a strategic long-term decision" is correct, "Enterprises do not need to retain certain core capabilities when outsourcing" is incorrect.

  • Enterprises do not need to retain certain core capabilities when outsourcing.

  • "Sub-contracting is a tactical, short-term approach whereas outsourcing is a strategic long-term decision" & "Enterprises do not need to retain certain core capabilities when outsourcing" are correct.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

5. A category manager for ductile iron castings (easy to buy products) is tasked with consolidating expenditure and driving savings within the category. The category manager forms a cross-functional sourcing team, conducts spend analysis, and determines that the category fits the "leverage" quadrant of the Kraljic matrix. In this situation, which of the following is the BEST course of actions for the team to take?

  • Conduct an internet search to find new iron casting suppliers in low-cost countries.

  • Check the existing supply base for capabilities and determine if the suppliers are in good standing with the company.

  • Determine the number of suppliers required along with their capabilities, and establish criteria to evaluate them.

  • Pick an existing supplier and have it design the part so that its production processes are optimized for cost.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

6. All of the following are required elements in a purchase requisition except:

  • Quantity and date required

  • Estimated unit cost

  • Operating account to be charged

  • Identification and approval of supplier by the end user

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

7. Recent research indicates that all of the following are top knowledge areas for procurement people except:

  • Supplier relationship management

  • Total cost analysis

  • Consumer behavior

  • Supplier analysis

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