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1.
What motivates a purchasing organization to require acceptance testing by the supplier?
2.
Which specifications allow suppliers freedom in choosing materials, production methods, or delivery processes?
3.
A company plans to own a solar panel costing $1,000, expecting benefits to offset the investment within five years. The firm intends to keep the solar panel for this duration. Should the payback period calculation guide this decision?
4.
Builder Inc is expanding rapidly in construction, requiring a transition from Excel spreadsheets to specialized material flow software. Who would be a primary internal stakeholder in assessing software compatibility?
5.
Apple's procurement team plans to purchase carbon-free aluminum for the next year. They currently have 27.4 tonnes in stock but anticipate needing 200 tonnes for production and double that amount for inventory to meet future production needs. How much aluminum should Apple buy?
6.
A neighborhood restaurant increases its order from a fish supplier and negotiates a 5% price reduction. What is this purchasing approach called?
7.
Faced with global competition, IKEA aims to cut costs and improve store quality. A project team is tasked with identifying the best-performing stores, analyzing operations, and recommending practices for the entire network. What describes this strategy?
8.
ABC Group initiates a new product development process, forming a team to define scope and features. Surveys are conducted to gather customer preferences. What process does this describe?
9.
Identify the fixed costs from the following options. (Select TWO)
10.
What are primary activities in an organization based on Porter’s value chain? (Choose TWO)
11.
Warwickshire Ambulance Service (WAS) focuses on Emergency Services and Patient Transport. It engages in benchmarking to enhance performance. What is a key benefit?
12.
Ymira drafts specifications for a water purifier using online sources such as blogs and comparison sites. What qualities make this information more useful?
13.
A supermarket chain, Company Z, wants environmentally responsible suppliers. What certification ensures suppliers have robust environmental policies?
14.
OMK plans to construct a complex steel plant abroad, requiring detailed specifications. Senior management decides to approach it as a project. What should precede drafting the specification?
15.
What is central to the value analysis process?
16.
What are potential consequences of over-specification? (Select TWO)
17.
To evaluate alternative options, which ratio is most helpful for a procurement manager?
18.
At what stage should buyers verify machinery compliance with design specifications?
19.
Which problems qualify as closed issues? (Select TWO)
20.
What factors may drive overhead variance? (Choose TWO)
21.
Which comparators are fair and reasonable in price analysis? (Select TWO)
22.
Halfords faces limited forward integration risk, as smaller retailers use 3D printing for custom components but hold minor market share. What force does 3D printing represent?
23.
What factors are direct barriers to market entry?
24.
Which market facilitates stock ownership creation, transfer, and dissolution?
25.
A restaurant negotiates quantity and price changes for a recurring fish order. What is this situation called?
