Question 1

Which of the following should be addressed by a contract strategy?

Accepted Answer

A)  Profitability of suppliers. 
B)  Outsourcing potential. 
C)  Competitor analysis. 
D)  Buying on contract or buying on spot. 
A)  Profitability of suppliers. 
B)  Outsourcing potential. 
C)  Competitor analysis. 
D)  Buying on contract or buying on spot. D

Question 2

Which of the following is not an activity required when conducting a feasibility study?

Accepted Answer

A)  Definition of categories and sub-categories. 
B)  Carry out an overview of current and future purchasing spend. 
C)  Most important stakeholders and actors involved. 
D)  Sourcing strategy for a certain category. 
A)  Definition of categories and sub-categories. 
B)  Carry out an overview of current and future purchasing spend. 
C)  Most important stakeholders and actors involved. 
D)  Sourcing strategy for a certain category. D

Question 3

Which of the following best explains the concept of 'overspecification'?

Accepted Answer

A)  Technical requirements are imposed on suppliers which are not necessary for the functionality of the product. 
B)  Technical requirements are not imposed on suppliers. 
C)  Technical requirements are imposed on suppliers and are necessary for the functionality of the product. 
D)  Technical requirements are not imposed on suppliers because they are not necessary for the functionality of the product. 
A)  Technical requirements are imposed on suppliers which are not necessary for the functionality of the product. 
B)  Technical requirements are not imposed on suppliers. 
C)  Technical requirements are imposed on suppliers and are necessary for the functionality of the product. 
D)  Technical requirements are not imposed on suppliers because they are not necessary for the functionality of the product. A

Question 4

Which of the following is not an element in a category sourcing plan?

Accepted Answer

A)  Category identification. 
B)  Business strategy and business issues. 
C)  Analysis of historical data. 
D)  Customer requirements and purchasing process. 
A)  Category identification. 
B)  Business strategy and business issues. 
C)  Analysis of historical data. 
D)  Customer requirements and purchasing process.

Question 5

Which of the following best explains 'category sourcing plan'?

Accepted Answer

A)  This identifies the quality strategy for a certain category. 
B)  This identifies the sourcing strategy for suppliers. 
C)  This identifies the pricing strategy for a certain category. 
D)  This identifies the sourcing strategy for a certain category. 
A)  This identifies the quality strategy for a certain category. 
B)  This identifies the sourcing strategy for suppliers. 
C)  This identifies the pricing strategy for a certain category. 
D)  This identifies the sourcing strategy for a certain category.

Question 6

Which of the following is not an element in a category sourcing plan?

Accepted Answer

A)  Objectives sourcing strategy (measurable results). 
B)  Commodity sourcing strategy. 
C)  Planning of activities. 
D)  Evaluation of customer satisfaction levels. 
A)  Objectives sourcing strategy (measurable results). 
B)  Commodity sourcing strategy. 
C)  Planning of activities. 
D)  Evaluation of customer satisfaction levels.

Question 7

Which of the following would not be an item in the 'Commodity sourcing strategy' contents of a category sourcing plan?

Accepted Answer

A)  Inventory reduction. 
B)  Targeted number of suppliers. 
C)  Location of suppliers. 
D)  Type of preferred contract. 
A)  Inventory reduction. 
B)  Targeted number of suppliers. 
C)  Location of suppliers. 
D)  Type of preferred contract.

Question 8

Which of the following term best describes the logistics relationship characteristic of a supplier?

Accepted Answer

A)  Periodic scheduling of materials required by producer. 
B)  Electronic document interchange. 
C)  Annual agreements. 
D)  Orders. 
A)  Periodic scheduling of materials required by producer. 
B)  Electronic document interchange. 
C)  Annual agreements. 
D)  Orders.

Question 9

Which of the following is not a stage of category sourcing?

Accepted Answer

A)  Category identification. 
B)  Category planning. 
C)  Category sourcing. 
D)  Category implementation. 
A)  Category identification. 
B)  Category planning. 
C)  Category sourcing. 
D)  Category implementation.

Question 10

Which of the following is a criterion in a category prioritization matrix?

Accepted Answer

A)  Cost savings potential. 
B)  Scope of last tender. 
C)  Current profit levels. 
D)  Ease of implementation. 
A)  Cost savings potential. 
B)  Scope of last tender. 
C)  Current profit levels. 
D)  Ease of implementation.

Question 11

What should a company do to avoid accusations of bribery and corruption?

Accepted Answer

A)  Encourage personal gifts and presents to decision-takers. 
B)  Invite bids from a wide range of suppliers. 
C)  Disclose bribery and corruption by competitors. 
D)  Introduce a policy on business ethics and integrity. 
A)  Encourage personal gifts and presents to decision-takers. 
B)  Invite bids from a wide range of suppliers. 
C)  Disclose bribery and corruption by competitors. 
D)  Introduce a policy on business ethics and integrity.

Question 12

Which of the following is not an activity required when conducting a feasibility study?

Accepted Answer

A)  Important legislation that may affect requirements and buying process. 
B)  Underlying cost structure and major cost drivers based upon total cost ownership. 
C)  Competitor analysis. 
D)  Assessment of initial savings that can be made. 
A)  Important legislation that may affect requirements and buying process. 
B)  Underlying cost structure and major cost drivers based upon total cost ownership. 
C)  Competitor analysis. 
D)  Assessment of initial savings that can be made.

Question 13

Which of the following is not an item of IT office supplies expenditure?

Accepted Answer

A)  Paper. 
B)  Printers. 
C)  Copier services. 
D)  Stationary. 
A)  Paper. 
B)  Printers. 
C)  Copier services. 
D)  Stationary.

Question 14

Which of the following is an example of a customer relationship tactic?

Accepted Answer

A)  Personal gifts and presents to decision-takers. 
B)  Supplier evaluations. 
C)  Competitive tendering. 
D)  Buy one get one free offer. 
A)  Personal gifts and presents to decision-takers. 
B)  Supplier evaluations. 
C)  Competitive tendering. 
D)  Buy one get one free offer.

Question 15

Which of the following is not an item of IT infrastructure expenditure?

Accepted Answer

A)  Sponsorship. 
B)  Printers. 
C)  Mobile telecom services. 
D)  PCs. 
A)  Sponsorship. 
B)  Printers. 
C)  Mobile telecom services. 
D)  PCs.

Question 16

Which of the following should be addressed by a category resourcing strategy?

Accepted Answer

A)  Single versus multiple sourcing. 
B)  Cost versus quality. 
C)  Competitor analysis. 
D)  Market share of supplier. 
A)  Single versus multiple sourcing. 
B)  Cost versus quality. 
C)  Competitor analysis. 
D)  Market share of supplier.

Question 17

Which of the following would not be an item in the 'Analysis of historical data' contents of a category sourcing plan?

Accepted Answer

A)  Price and cost analysis. 
B)  Supply market analysis. 
C)  Business priorities. 
D)  Current suppliers. 
A)  Price and cost analysis. 
B)  Supply market analysis. 
C)  Business priorities. 
D)  Current suppliers.

Question 18

Which of the following is not a step in a process for driving down purchasing expenditure?

Accepted Answer

A)  Check contracts currently in place with suppliers. 
B)  Find the best possible contract for the company's needs. 
C)  Develop the best possible solution in close collaboration with the selected, best-in-class supplier. 
D)  Accept the supplier's first price. 
A)  Check contracts currently in place with suppliers. 
B)  Find the best possible contract for the company's needs. 
C)  Develop the best possible solution in close collaboration with the selected, best-in-class supplier. 
D)  Accept the supplier's first price.

Question 19

Which of the following best explains the concept of the 'French fries principle'?

Accepted Answer

A)  Price increases are prohibited. 
B)  Price increases are automatically passed onto the next in line. 
C)  Price increases are automatically passed onto the final customers. 
D)  Price increases are negotiated. 
A)  Price increases are prohibited. 
B)  Price increases are automatically passed onto the next in line. 
C)  Price increases are automatically passed onto the final customers. 
D)  Price increases are negotiated.

Question 20

Which of the following would not be an item in the 'Business strategy and business issues' contents of a category sourcing plan?

Accepted Answer

A)  Business goals and issues. 
B)  Business priorities. 
C)  Important stakeholders. 
D)  Current suppliers. 
A)  Business goals and issues. 
B)  Business priorities. 
C)  Important stakeholders. 
D)  Current suppliers.

Which of the following should be addressed by a contract strategy?

Which of the following is not an activity required when conducting a feasibility study?

Which of the following best explains the concept of 'overspecification'?

Which of the following is not an element in a category sourcing plan?

Which of the following best explains 'category sourcing plan'?

Which of the following is not an element in a category sourcing plan?

Which of the following would not be an item in the 'Commodity sourcing strategy' contents of a category sourcing plan?

Which of the following term best describes the logistics relationship characteristic of a supplier?

Which of the following is not a stage of category sourcing?

Which of the following is a criterion in a category prioritization matrix?

What should a company do to avoid accusations of bribery and corruption?

Which of the following is not an activity required when conducting a feasibility study?

Which of the following is not an item of IT office supplies expenditure?

Which of the following is an example of a customer relationship tactic?

Which of the following is not an item of IT infrastructure expenditure?

Which of the following should be addressed by a category resourcing strategy?

Which of the following would not be an item in the 'Analysis of historical data' contents of a category sourcing plan?

Which of the following is not a step in a process for driving down purchasing expenditure?

Which of the following best explains the concept of the 'French fries principle'?

Which of the following would not be an item in the 'Business strategy and business issues' contents of a category sourcing plan?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

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 9: Category Sourcing: Developing Effective Sourcing Strategies

Which of the following should be addressed by a contract strategy?

Which of the following is not an activity required when conducting a feasibility study?

Which of the following best explains the concept of 'overspecification'?

Which of the following is not an element in a category sourcing plan?

Which of the following best explains 'category sourcing plan'?

Which of the following is not an element in a category sourcing plan?

Which of the following would not be an item in the 'Commodity sourcing strategy' contents of a category sourcing plan?

Which of the following term best describes the logistics relationship characteristic of a supplier?

Which of the following is not a stage of category sourcing?

Which of the following is a criterion in a category prioritization matrix?

What should a company do to avoid accusations of bribery and corruption?

Which of the following is not an activity required when conducting a feasibility study?

Which of the following is not an item of IT office supplies expenditure?

Which of the following is an example of a customer relationship tactic?

Which of the following is not an item of IT infrastructure expenditure?

Which of the following should be addressed by a category resourcing strategy?

Which of the following would not be an item in the 'Analysis of historical data' contents of a category sourcing plan?

Which of the following is not a step in a process for driving down purchasing expenditure?

Which of the following best explains the concept of the 'French fries principle'?

Which of the following would not be an item in the 'Business strategy and business issues' contents of a category sourcing plan?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

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