Question 1

Which of the following is not a potential consequence of category sourcing?

Accepted Answer

A)  Material cost savings. 
B)  Increased profits. 
C)  Reduction of working capital. 
D)  Reduction of transaction costs. 
A)  Material cost savings. 
B)  Increased profits. 
C)  Reduction of working capital. 
D)  Reduction of transaction costs.

Question 2

Which of the following is not an element in the definition of a 'partner'?

Accepted Answer

A)  An ongoing buyer-seller relationship. 
B)  A commitment over an extended period of time. 
C)  A mutual sharing of information. 
D)  A sharing of risks only. 
A)  An ongoing buyer-seller relationship. 
B)  A commitment over an extended period of time. 
C)  A mutual sharing of information. 
D)  A sharing of risks only.

Question 3

Which of the following is not an item of marketing and communication expenditure?

Accepted Answer

A)  Sponsorship. 
B)  Promotional items. 
C)  Market research. 
D)  PCs. 
A)  Sponsorship. 
B)  Promotional items. 
C)  Market research. 
D)  PCs.

Question 4

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

Accepted Answer

A)  Interior decorating. 
B)  Printers. 
C)  Mobile telecom services. 
D)  PCs. 
A)  Interior decorating. 
B)  Printers. 
C)  Mobile telecom services. 
D)  PCs.

Question 5

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

Accepted Answer

A)  Profitability of suppliers. 
B)  Global versus local sourcing. 
C)  Competitor analysis. 
D)  Market share of supplier. 
A)  Profitability of suppliers. 
B)  Global versus local sourcing. 
C)  Competitor analysis. 
D)  Market share of supplier.

Question 6

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

Accepted Answer

A)  Analysis of current suppliers and how they perform. 
B)  Carry out an overview of value chain. 
C)  Definition of future company requirements and needs. 
D)  Functional and technical specification of purchased products and future needs. 
A)  Analysis of current suppliers and how they perform. 
B)  Carry out an overview of value chain. 
C)  Definition of future company requirements and needs. 
D)  Functional and technical specification of purchased products and future needs.

Question 7

Which of the following best explains 'contract buying'?

Accepted Answer

A)  Bought at last year's price. 
B)  Bought at possible future price. 
C)  Buying at current market prices. 
D)  Bought at previously agreed price. 
A)  Bought at last year's price. 
B)  Bought at possible future price. 
C)  Buying at current market prices. 
D)  Bought at previously agreed price.

Question 8

Which of the following is not an aspect in the changing nature of buyer-supplier relationships over time?

Accepted Answer

A)  Time horizon. 
B)  Complaints. 
C)  Logistics. 
D)  Quality. 
A)  Time horizon. 
B)  Complaints. 
C)  Logistics. 
D)  Quality.

Question 9

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

Question 10

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

Accepted Answer

A)  White paper. 
B)  Printers. 
C)  Mobile telecom services. 
D)  PCs. 
A)  White paper. 
B)  Printers. 
C)  Mobile telecom services. 
D)  PCs.

Question 11

Which of the following explains the abbreviation 'KPI'?

Accepted Answer

A)  Kanban purchasing inventory. 
B)  Key planning initiative. 
C)  Key performance indicator. 
D)  Knowledge promotes innovation. 
A)  Kanban purchasing inventory. 
B)  Key planning initiative. 
C)  Key performance indicator. 
D)  Knowledge promotes innovation.

Question 12

Which of the following term best describes the price relationship characteristic of a supply partner?

Accepted Answer

A)  Price + rebate. 
B)  Price based on open calculation. 
C)  Price + cost-reduction targets. 
D)  Price. 
A)  Price + rebate. 
B)  Price based on open calculation. 
C)  Price + cost-reduction targets. 
D)  Price.

Question 13

Which of the following is not a potential benefit of partnerships in product and supply chain costs?

Accepted Answer

A)  Time-to-market reduction. 
B)  Reduction in materials costs. 
C)  Reduction in labour costs. 
D)  Reduction in process costs. 
A)  Time-to-market reduction. 
B)  Reduction in materials costs. 
C)  Reduction in labour costs. 
D)  Reduction in process costs.

Question 14

Which of the following explains the abbreviation 'RFP'?

Accepted Answer

A)  Request for proposal. 
B)  Recent financial projections. 
C)  Request for partnership. 
D)  Return for packaging. 
A)  Request for proposal. 
B)  Recent financial projections. 
C)  Request for partnership. 
D)  Return for packaging.

Question 15

Which of the following is not a potential benefit of partnerships in logistics?

Accepted Answer

A)  Anticipation of future requirements. 
B)  Increased profits. 
C)  Higher levels of service. 
D)  Lower logistics costs. 
A)  Anticipation of future requirements. 
B)  Increased profits. 
C)  Higher levels of service. 
D)  Lower logistics costs.

Question 16

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)  Type and age of contract. 
A)  Cost savings potential. 
B)  Scope of last tender. 
C)  Current profit levels. 
D)  Type and age of contract.

Question 17

Which of the following is not an item of marketing and communication expenditure?

Accepted Answer

A)  Sponsorship. 
B)  Promotional items. 
C)  Market research. 
D)  Raw materials. 
A)  Sponsorship. 
B)  Promotional items. 
C)  Market research. 
D)  Raw materials.

Question 18

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

Accepted Answer

A)  Cost reduction. 
B)  Innovation. 
C)  Quality improvement. 
D)  Team composition. 
A)  Cost reduction. 
B)  Innovation. 
C)  Quality improvement. 
D)  Team composition.

Question 19

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

Accepted Answer

A)  Summary of expected results and costs. 
B)  Targeted number of suppliers. 
C)  Location of suppliers. 
D)  Type of preferred contract. 
A)  Summary of expected results and costs. 
B)  Targeted number of suppliers. 
C)  Location of suppliers. 
D)  Type of preferred contract.

Question 20

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

Accepted Answer

A)  Bid comparisons and negotiations. 
B)  Targeted number of suppliers. 
C)  Communication and contract reviews. 
D)  Spend and supply market analysis. 
A)  Bid comparisons and negotiations. 
B)  Targeted number of suppliers. 
C)  Communication and contract reviews. 
D)  Spend and supply market analysis.

Which of the following is not a potential consequence of category sourcing?

Which of the following is not an element in the definition of a 'partner'?

Which of the following is not an item of marketing and communication expenditure?

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 is not an activity required when conducting a feasibility study?

Which of the following best explains 'contract buying'?

Which of the following is not an aspect in the changing nature of buyer-supplier relationships over time?

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

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

Which of the following explains the abbreviation 'KPI'?

Which of the following term best describes the price relationship characteristic of a supply partner?

Which of the following is not a potential benefit of partnerships in product and supply chain costs?

Which of the following explains the abbreviation 'RFP'?

Which of the following is not a potential benefit of partnerships in logistics?

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

Which of the following is not an item of marketing and communication expenditure?

Which of the following would not be an item in the 'Objectives sourcing strategy' contents of 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 would not be an item in the 'Planning of activities' 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 is not a potential consequence of category sourcing?

Which of the following is not an element in the definition of a 'partner'?

Which of the following is not an item of marketing and communication expenditure?

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 is not an activity required when conducting a feasibility study?

Which of the following best explains 'contract buying'?

Which of the following is not an aspect in the changing nature of buyer-supplier relationships over time?

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

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

Which of the following explains the abbreviation 'KPI'?

Which of the following term best describes the price relationship characteristic of a supply partner?

Which of the following is not a potential benefit of partnerships in product and supply chain costs?

Which of the following explains the abbreviation 'RFP'?

Which of the following is not a potential benefit of partnerships in logistics?

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

Which of the following is not an item of marketing and communication expenditure?

Which of the following would not be an item in the 'Objectives sourcing strategy' contents of 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 would not be an item in the 'Planning of activities' 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