Question 1

Which of the following are performance targets for purchasing?

Accepted Answer

A)  Profit maximisation. 
B)  Manufacturing improvement. 
C)  Improving supplier logistics performance. 
D)  Internal inefficiency. 
A)  Profit maximisation. 
B)  Manufacturing improvement. 
C)  Improving supplier logistics performance. 
D)  Internal inefficiency.

Question 2

Which one of the following best describes what investments are made by the company in terms of new products and technology,and what products will be taken out of the market for the years to come?

Accepted Answer

A)  Planning phase 
B)  Business alignment strategy 
C)  Operational phase 
D)  Implementation phase 
A)  Planning phase 
B)  Business alignment strategy 
C)  Operational phase 
D)  Implementation phase

Question 3

Which of the following is the prime source of the purchasing objectives?

Accepted Answer

A)  Operational plans. 
B)  Customer evaluations. 
C)  Company strategies. 
D)  Tactical plans. 
A)  Operational plans. 
B)  Customer evaluations. 
C)  Company strategies. 
D)  Tactical plans.

Question 4

Which of the following is not a feature of 'Global sourcing'?

Accepted Answer

A)  It is pro-actively integrating and coordinating common items and processes across worldwide locations. 
B)  It is pro-actively integrating and coordinating common items and materials across worldwide locations. 
C)  It is pro-actively integrating and coordinating common items and suppliers across worldwide locations. 
D)  It is reactively dispersing common items and materials across worldwide locations. 
A)  It is pro-actively integrating and coordinating common items and processes across worldwide locations. 
B)  It is pro-actively integrating and coordinating common items and materials across worldwide locations. 
C)  It is pro-actively integrating and coordinating common items and suppliers across worldwide locations. 
D)  It is reactively dispersing common items and materials across worldwide locations.

Question 5

Which of the following is a stage in the 'Purchasing and Supply Development Model'?

Accepted Answer

A)  Transaction orientation. 
B)  Pricing. 
C)  Design. 
D)  Manufacture. 
A)  Transaction orientation. 
B)  Pricing. 
C)  Design. 
D)  Manufacture.

Question 6

Which of the following dimensions are quality costs?

Accepted Answer

A)  The cost of wages and salaries. 
B)  The cost of preventing errors. 
C)  The cost of cancelled orders. 
D)  The reputational costs. 
A)  The cost of wages and salaries. 
B)  The cost of preventing errors. 
C)  The cost of cancelled orders. 
D)  The reputational costs.

Question 7

Which of the following techniques can be used to measure purchasing performance?

Accepted Answer

A)  Benchmarking. 
B)  Suggestion schemes. 
C)  Teambuilding. 
D)  Psychometric testing. 
A)  Benchmarking. 
B)  Suggestion schemes. 
C)  Teambuilding. 
D)  Psychometric testing.

Question 8

Which of the following are performance targets for purchasing?

Accepted Answer

A)  Profit maximisation. 
B)  Supplier quality improvement. 
C)  Improving logistics performance. 
D)  Internal communications. 
A)  Profit maximisation. 
B)  Supplier quality improvement. 
C)  Improving logistics performance. 
D)  Internal communications.

Question 9

Which of the following best explains the term 'Learning Curve' originally developed in the American aircraft industry?

Accepted Answer

A)  The cost price per aeroplane decreased at a fixed percentage as the cumulative production volume of a particular type of aircraft doubled. 
B)  The cost price per aeroplane increased at a fixed percentage as the cumulative production volume of a particular type of aircraft doubled. 
C)  The cost price per aeroplane decreased at a variable percentage as the cumulative production volume of a particular type of aircraft doubled. 
D)  The cost price per aeroplane increased at a variable percentage as the cumulative production volume of a particular type of aircraft doubled. 
A)  The cost price per aeroplane decreased at a fixed percentage as the cumulative production volume of a particular type of aircraft doubled. 
B)  The cost price per aeroplane increased at a fixed percentage as the cumulative production volume of a particular type of aircraft doubled. 
C)  The cost price per aeroplane decreased at a variable percentage as the cumulative production volume of a particular type of aircraft doubled. 
D)  The cost price per aeroplane increased at a variable percentage as the cumulative production volume of a particular type of aircraft doubled.

Question 10

Which of the following is a stage in the 'Purchasing and Supply Development Model'?

Accepted Answer

A)  Planning. 
B)  Pricing. 
C)  Design. 
D)  Internal integration. 
A)  Planning. 
B)  Pricing. 
C)  Design. 
D)  Internal integration.

Question 11

Which of the following is not a focus in the purchasing and supply model?

Accepted Answer

A)  Ethics 
B)  Savings through synergy. 
C)  Total cost of ownership. 
D)  Supply chain optimization 
A)  Ethics 
B)  Savings through synergy. 
C)  Total cost of ownership. 
D)  Supply chain optimization

Question 12

Which of the following should be provided by purchasing management?

Accepted Answer

A)  Periodical, detailed management reporting. 
B)  Increased market share. 
C)  New product development. 
D)  Risk assessments. 
A)  Periodical, detailed management reporting. 
B)  Increased market share. 
C)  New product development. 
D)  Risk assessments.

Question 13

Which of the following is not part of the purchasing management process?

Accepted Answer

A)  Purchasing planning. 
B)  Purchasing policy implementation. 
C)  Purchasing control/inspection and evaluation. 
D)  Health and Safety compliance. 
A)  Purchasing planning. 
B)  Purchasing policy implementation. 
C)  Purchasing control/inspection and evaluation. 
D)  Health and Safety compliance.

Question 14

Which of the following explains 'Purchasing Performance'?

Accepted Answer

A)  The extent to which the purchasing function is able to realize its costs. 
B)  The extent to which the purchasing function is able to sacrifice of a minimum of the company's resources, i.e. costs. 
C)  The extent to which the purchasing function is able to realize its predetermined goals at the sacrifice of a minimum of the company's resources, i.e. costs. 
D)  The extent to which the purchasing function is able to realize its predetermined goals. 
A)  The extent to which the purchasing function is able to realize its costs. 
B)  The extent to which the purchasing function is able to sacrifice of a minimum of the company's resources, i.e. costs. 
C)  The extent to which the purchasing function is able to realize its predetermined goals at the sacrifice of a minimum of the company's resources, i.e. costs. 
D)  The extent to which the purchasing function is able to realize its predetermined goals.

Question 15

Which of the following are likely to be a criterion for choosing the best supplier?

Accepted Answer

A)  Location. 
B)  Size. 
C)  Competitiveness. 
D)  Profitability. 
A)  Location. 
B)  Size. 
C)  Competitiveness. 
D)  Profitability.

Question 16

Which of the following dimensions are aspects of materials cost policy?

Accepted Answer

A)  Control of the wage/salary bill. 
B)  The cost of energy consumption. 
C)  The cost of cancelled orders. 
D)  Reduction of transaction cost. 
A)  Control of the wage/salary bill. 
B)  The cost of energy consumption. 
C)  The cost of cancelled orders. 
D)  Reduction of transaction cost.

Question 17

Which of the following is the main reason for 'Single Sourcing'?

Accepted Answer

A)  Contractual obligations. 
B)  The number of suppliers. 
C)  The technical specifications of the good or service to be purchased. 
D)  The price. 
A)  Contractual obligations. 
B)  The number of suppliers. 
C)  The technical specifications of the good or service to be purchased. 
D)  The price.

Question 18

Which of the following is not part of communicating purchasing policy?

Accepted Answer

A)  Internal communication. 
B)  Settling complaints. 
C)  Business values, integrity and ethics. 
D)  External communication. 
A)  Internal communication. 
B)  Settling complaints. 
C)  Business values, integrity and ethics. 
D)  External communication.

Question 19

Which of the following are performance targets for purchasing?

Accepted Answer

A)  Profit maximisation. 
B)  Supplier quality improvement. 
C)  Improving logistics performance. 
D)  Internal communications. 
A)  Profit maximisation. 
B)  Supplier quality improvement. 
C)  Improving logistics performance. 
D)  Internal communications.

Question 20

Which of the following tasks is not a task of the purchasing department?

Accepted Answer

A)  Conducting purchasing market-research. 
B)  Specification of price and delivery conditions. 
C)  Investigating the financial position of suppliers. 
D)  Defining purchasing specifications. 
A)  Conducting purchasing market-research. 
B)  Specification of price and delivery conditions. 
C)  Investigating the financial position of suppliers. 
D)  Defining purchasing specifications.

Which of the following are performance targets for purchasing?

Which one of the following best describes what investments are made by the company in terms of new products and technology,and what products will be taken out of the market for the years to come?

Which of the following is the prime source of the purchasing objectives?

Which of the following is not a feature of 'Global sourcing'?

Which of the following is a stage in the 'Purchasing and Supply Development Model'?

Which of the following dimensions are quality costs?

Which of the following techniques can be used to measure purchasing performance?

Which of the following are performance targets for purchasing?

Which of the following best explains the term 'Learning Curve' originally developed in the American aircraft industry?

Which of the following is a stage in the 'Purchasing and Supply Development Model'?

Which of the following is not a focus in the purchasing and supply model?

Which of the following should be provided by purchasing management?

Which of the following is not part of the purchasing management process?

Which of the following explains 'Purchasing Performance'?

Which of the following are likely to be a criterion for choosing the best supplier?

Which of the following dimensions are aspects of materials cost policy?

Which of the following is the main reason for 'Single Sourcing'?

Which of the following is not part of communicating purchasing policy?

Which of the following are performance targets for purchasing?

Which of the following tasks is not a task of the purchasing department?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters

Exam 3: The Purchasing Management Process

Which of the following are performance targets for purchasing?

Which one of the following best describes what investments are made by the company in terms of new products and technology,and what products will be taken out of the market for the years to come?

Which of the following is the prime source of the purchasing objectives?

Which of the following is not a feature of 'Global sourcing'?

Which of the following is a stage in the 'Purchasing and Supply Development Model'?

Which of the following dimensions are quality costs?

Which of the following techniques can be used to measure purchasing performance?

Which of the following are performance targets for purchasing?

Which of the following best explains the term 'Learning Curve' originally developed in the American aircraft industry?

Which of the following is a stage in the 'Purchasing and Supply Development Model'?

Which of the following is not a focus in the purchasing and supply model?

Which of the following should be provided by purchasing management?

Which of the following is not part of the purchasing management process?

Which of the following explains 'Purchasing Performance'?

Which of the following are likely to be a criterion for choosing the best supplier?

Which of the following dimensions are aspects of materials cost policy?

Which of the following is the main reason for 'Single Sourcing'?

Which of the following is not part of communicating purchasing policy?

Which of the following are performance targets for purchasing?

Which of the following tasks is not a task of the purchasing department?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters