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L5M6 Category Management - paper *4.
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1.
Thapelo is a Category Manager at a local organisation which deals in auto parts. Strategic sourcing is one of the approaches he has adopted, which two of the following are elements of strategic sourcing?
2.
Which of the following best describes the “Problem child” category of the Boston Consulting Group Matrix?
3.
Price acceptance and price management are two outcomes of tactical price management. Which of the following will describe the approach to supplier development followed by the buyer in Price Management?
4.
Category management is cyclical process. Arrange the following in their sequential order.
1.Category Prioritisation
2. Supplier Relation Management
3. Category Strategic Development
4. Category Plan Development
5.
Pareto analysis can be used to analyse expenditure to construct an analysis of category spend versus the number of suppliers used in each category. This will identify the 20% or so of spend categories that account for 80% of the suppliers. Which one among the following is not the benefit of this analysis?
6.
Supply chain mapping is the process of identifying and documenting the exact source of every material, every process and every shipment involved in bringing goods to market. Which two among the following represent the importance of Supply chain mapping to procurement professionals?
7.
Supplier preferencing matrix enables procurement to understand how a supplier might value its account with them. It suggests that from the supplier’s perspective there is a correlation between the attractiveness of the buyer’s account and the revenue generation, which in turn affects how the supplier will manage its account with the buyer. Which is the Supplier’s strategy for a buyer whose account falls in the quadrant, low value, high account attractiveness?
8.
Dingalo is a furniture making organisation has just designed and produced a new chair which they believe will boost their sales for the coming season. A cross functional team is currently involved in an exercise of independently examining the product with the view of increasing functionality at the current cost or reducing cost without compromising functionality. What technical term is given to this process?
9.
A strategic positioning matrix provides three options to buyers of dealing with the Supplier – Exploit, Diversify & Balance. Which of the following best describes the exploit strategy?
10.
Taboka is a Category manager at a local hardware shop. She is anxious that a new legislation tabled in parliament will have a significant impact on the input costs to the suppliers and the time to set up the manufacturing facility. Which of the Five Forces is Taboka concerned about?
11.
Supply chain mapping is a useful tool for category managers to identify with which of the following? Select three that apply.
12.
Which of the following is not a benefit of category management?
13.
A local supermarket has taken a decision to implement category management for indirect activities. As first step they have formed a category council to provide a governance structure to support the successful management of the categories. Which two among the following will be their prime concerns for developing category strategy?
14.
Value chain analysis has benefits to an organisation. Select the THREE that apply from the following
1. Partnerships
2. Cost advantage by reducing costs
3. Identifying activities that add the most value
4. Differentiation advantage by ensuring its products or services are different from
those of competitors
15.
An effective technology route map will ensure the organisation is protected against cyber-crime and other high-risk events. Is this correct?
16.
Which two of the following are characteristics of traditional purchasing?
17.
Which of the following are economic factors that might have an impact on an organisation’s direct and indirect expenditures? Select three that apply.
18.
When applying total cost of ownership models, which of the following are relevant disposal costs? Select two that apply.
19.
When applying Porter’s Five Forces tool, which of the following will have the greatest impact on the likelihood of new entrants to the industry?
1.Stakeholders’ physical locations
2. Level of regulation and government control
3. Product packaging and design
4. Initial set-up costs
20.
What are the important considerations in effective implementation of category management exercise? Identify two:
21.
Cost drivers are factors that cause the amount of cost to change and hence influence the total cost of a commodity. This makes cost models very important. Which of the following are basic principles for creating accurate cost models? Select ALL that apply
1. Capture cost drivers and not just costs
2. Cost drivers should be commodity specific
3. Consider total cost of ownership
4. Start with a basic model
5. Use data already internally held, or obtained from other sources to improve cost
model
22.
To develop a category management process, a category manager needs to gatherdata that can help identify market trends. Tom was conducting a market analysis and realised that in his particular market, the stock prices are rising and the forecast for volumes show them to increase. What type of a market has Tom just discovered?
23.
Which one of the future demand patterns shows a smooth order volume which enables the supplier to operate at optimum capacity all the time?
24.
Which one of the future demand patterns shows a smooth order volume which enables the supplier to operate at optimum capacity all the time?
25.
The 3rd step in the spend analytics process which aims to address data gaps prior to spend analytics to improve results reliability is which of the following steps
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