1) Which of the following statements about procurement is true?
A) It is important to always focus on price only
B) Aspects such as delivery delays, defects, or service may impact the total cost of a purchase even if the price is low
C) The cost of inspections of purchased items is irrelevant to procurement
D) In general, procurement costs have a lower impact on profit now compared to 50 years ago
E) All of the above
2) Which of the following statements about supply market complexity is true?
A) Markets with few suppliers have higher supply risk than markets with many suppliers
B) Products with unique specifications are generally associated with low supply risk
C) Markets with excess capacity have higher supply risk than markets with restricted capacity
D) Products with few potential subsitutes are generally associated with low supply risk
E) None of the above
3) Which of the following statements about supply mapping is true?
A) For "tactical" items, transaction costs are high compared to the value of the item
B) Generic items sourced in large quantities are referred to as "critical"
C) For "leverage" items, it is important to actively search for alternatives and use long-term contracts
D) Capital equipment generally falls into the "strategic" category
E) All of the above
4) Suppose you are sourcing a high risk, high profit impact item. Which of the following describes a suitable approach/strategy according to the risk-spend framework?
A) Streamline acquisition process
B) Maximize leverage
C) Search for substitutes only
D) Consolidate volumes
E) None of the above
5) Which statement about the sourcing process is true?
A) One of the key purposes of the internal assessment step is to analyze supplier dynamics
B) It is important to develop a category implementation plan before RFPs are sent out
C) The feedback loop is primarily a reporting step
D) The sourcing process is only relevant for leverage items
E) None of the above
6) Which of the following statements about RFPs/RFQs is true?
A) It is important to have the supplier answer as many questions as possible
B) It is important to have as few questions as possible to ensure many suppliers respond
C) It is important to start negotiating before the responses come in
D) It is important to be transparent in how suppliers will be evaluated
E) All of the above
7) Suppose you are about to purchase capital equipment. Which of the following cost categories is relevant to consider on top of the upfront purchase price before making the purchase?
A) Taxes and duties
B) Disposal costs
C) Training and certification
D) Expected downtime
E) All of the above
8) Which of the following is a key element of an outsourcing contract?
A) A change control process
B) Dispute resolution
C) Termination procedures
D) A comprehensive service definition
E) All of the above
9) Which of the following describes a hedging strategy where something is bought today at today's price to be delivered next month?
A) Forward contract
B) Call option
C) Put option
D) Physical hedging
E) Nonce of the above
10) Which of the following is true about sustainable/responsible sourcing?
A) Environmental responsibilities are the most important ones for all firms
B) Brand image is normally not considered an important aspect of CSR
C) Traing of suppliers is primarily a philantropic move
D) There is a hierarchy of reponsibilities, and the most important resonsibility is the economic responsibility
E) None of the above