L4 M6 Sample Paper Flashcards
Which ONE of the following would a buyer want to exploit from a potential new entrant to a market?
a. Smaller distribution network
b. Insurance provision
c. Economies of scale
d. High switching cost
C
In a recently created team, people start to push against the established boundaries and there is a conflict
between team members’ working styles causing some people to feel frustrated. This team is at which stage of
its development?
a. Forming
b. Norming
c. Performing
d. Storming
D
Which ONE of the following is used between stakeholders when protecting intellectual property rights
(IPR)?
a. Non-disclosure agreements
b. Exclusion clauses
c. Patent terms
d. Secrecy Act conditions
A
An engineering company (EngCo) is becoming concerned by the reducing number of its potential suppliers
of components of X2ZZ, which is vital to the manufacture of its leading products. Over the years, several
suppliers have merged and some have exited the market. Which ONE of the following actions might open up
new suppliers to EngCo through substitute products?
a. Change the specification
b. Ease the commercial terms
c. Shorten the supply chain
d. Relax quality assurance
A
A leading pharmaceutical company (PharmCo) is concerned about the impact of market changes on its
product portfolio. Following a recent review, it has highlighted both the tightening regulatory regime around
consumer protection and exchange rate volatility as two key threats. The factors of most concern to PharmCo
are …
a. legislative and economic
b. political and environmental
c. economic and political
d. environmental and legislative
A
Auto Group (AG) is an automotive manufacturer. It is an established business with a strong market share in
its chosen markets, providing vehicles in the mid-range quality segment. AG has decided to launch a new lower
specified vehicle range in the economy vehicle segment. Its strategy is to price low, which it can do because it
can produce the vehicles relatively cheaply due to its previous investments in technology. Its source of
competitive advantage is based on which recognised approach?
a. Product differentiation
b. Cost leadership
c. Brand differentiation
d. Cost reduction
B
Risk management in procurement and supply fundamentally focuses on understanding which of the
following?
- Security
- Reward
- Probability
- Impact
a. 1 and 3 only
b. 2 and 4 only
c. 3 and 4 only
d. 1 and 2 only
C
A procurement officer is creating award criteria for a competitive tender and has decided to evaluate
suppliers based on price and the suppliers’ method statement for delivering the specification. Is this
appropriate?
a. Yes, because a method statement is a requirement in all tenders
b. No, because price is a requirement in all tenders
c. No, because method statements are not easy to evaluate
d. Yes, because these both relate directly to the execution of the contract
D
Effective cost modelling involves which of the following? Select the THREE that apply.
a. Supplier negotiation
b. Continuity planning
c. Differential pricing
d. Data gathering
e. Data analysis
f. Identify drivers
D, E & F
Which of the following are recognised conflict resolution approaches when dealing with key internal
stakeholders, where a resolution must be agreed? Select the TWO that apply.
a. Avoiding
b. Compromising
c. Accommodating
d. Maintaining
e. Defending
B & C
At which stage of the relationship life cycle should a buyer focus mostly on monitoring the supplier against
clearly stated standards?
a. Onboarding
b. Performance management
c. Supplier development
d. Mobilisation
B
Which ONE of the following is the appropriate approach for supplies that have high-cost impact/low-risk
impact characteristics?
a. Competitive tendering
b. Joint venture
c. Spot buying
d. Strategic alliance
A
For a manufacturing organisation, significant added value can be achieved by maximising supply chain
relationships and in particular by reducing inventory holding quantities. Which ONE of the following is an
approach that such an organisation could use to achieve added value in this way?
a. Value for money (VFM)
b. Contract management (CM)
c. Just in time (JIT)
d. Total quality management (TQM)
C
A global financial services organisation (FSO) has decided to outsource a significant part of its customer
service operation. It has created a shortlist of four possible suppliers. The FSO has a range of specific needs in
respect of service delivery and each will need to be evaluated when the final tenders are received. However,
some of these needs are more important than others. Which ONE of the following will enable the FSO to
undertake an effective evaluation of the final bids from the potential suppliers?
a. Pre-qualification questionnaire
b. Contract terms
c. Request for information
d. Weighted criteria
D
Power Generators Group (PGG) is a major manufacturer of large industrial diesel generators. Its business
has been significantly impacted in recent years by the advancing government agenda in response to climate
change and new environmental regulations. PGG is mostly impacted by which factors?
- Economic
- Political
- Legislative
- Social
a. 1 and 2 only
b. 2 and 3 only
c. 3 and 4 only
d. 1 and 3 only
B
Accurate cost-modelling is a useful aid for procurement professionals to gain a better understanding of
which of the following?
- Cost drivers
- Potential cost savings
- Cost targets
- Cost-sharing opportunities
a. 1 and 2 only
b. 2 and 3 only
c. 3 and 4 only
d. 1 and 3 only
A
Partnership sourcing is highly effective and should be applied to all types of spend. Is thisstatement TRUE?
a. No, it will only apply to high value and high risk spend
b. Yes, it is well known to drive maximum value on all areas of spend
c. No, it should be implemented on contracts of high value and low risk spend
d. Yes, all suppliers should be treated like partners as it is good ethical practice
A
A project team has recently been established and team performance is improving. Team members are
now working effectively together as a cohesive unit. This team has now reached the ‘norming’ stage of team
development. Is this statement TRUE?
a. No, this is the forming stage of team development
b. Yes, it has taken a while and trust has now been established
c. No, this is the storming stage of team development
d. Yes, they will stay in this stage until someone leaves
B
Partnerships often fail due to changes in the external market environment that impact on both the
procurement organisation and its chosen partner. Which tools could be used to help monitor such changes?
Select the TWO that apply.
a. Pareto analysis
b. Porter’s five forces
c. Whole life costing (WLC)
d. STEEPLE
e. Early supplier involvement (ESI)
B & D
Which of the following are benefits of using a partnering approach with an external supplier? Select THREE
that apply.
a. Sharing risk
b. Quicker decision making
c. Increased knowledge
d. Pooling of resources
e. Autonomy in decision making
f. An adversarial relationship
A, C & D
