Deck 4: Procurement

Question 1

Which of the following reflects does not reflect a strategic focus on procurement?

A)focus on total cost of ownership.
B)supply base reduction.
C)focus on purchase price.
D)win-win negotiation.

Answer 1

C

Question 2

company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. This suggests that the company has begun:

A)volume consolidation
B)supplier operational integration
C)value management
D)analysis of total cost of ownership

Answer 2

B

Question 3

Supply base reduction (volume consolidation)

A)has potential benefits for suppliers as well as for buyers.
B)involves early supplier involvement in product design.
C)puts the buyer at a negotiating disadvantage.
D)has little potential for savings for buyers.

Answer 3

A

Question 4

procurement, Total Cost of Ownership includes all of the following except:

A)field failures of purchased items
B)consideration of the impact of supplier quantity discounts
C)cost of order placement
D)In fact, total cost of ownership includes all of the above.