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Why is a specification seen as the most important document in procurement?
What is a key limitation of functional benchmarking despite its effectiveness?
Are buyers stronger than suppliers in a monopoly market?
Why might a company send value engineering analyses to external suppliers?
Which of the following are the focuses of ISO 14001:2015?
1. Life cycle
2. Process
3. Capacity
4. Information security
Company A sells a product priced at $60, with fixed costs totaling $20,000. How many units must the company sell to break even?
What is a valuable tool for value engineering?
Which two of the following are considered secondary activities within an organization?
A procurement officer is using whole-life costing for machinery with costs presented as a range rather than specific values. What costing model is most suitable?
Even within the same industry and with comparable perceptions of relative value and pricing, buying organizations might opt for different choices regarding switching. Which of the subsequent factors might sway a buying organization towards substitute products?
1.Possibility of backward integration
2.Availability of financial resources
3.High switching costs
4.Alignment of the substitute with the organization's strategy
Company JKX is in the process of creating a new environmentally friendly product, but they lack clarity on which features will resonate most with customers. In this scenario, what approach could assist them in determining the essential functions for the new product?
During a meeting about a construction project, a stakeholder raises concerns about fluctuating material costs and uncertain estimates. The procurement manager proposes covering supplier costs plus a 10% profit margin. What type of pricing contract is this?
When constructing a business case for acquiring a new copier, Maria examines its whole-life costs as follows:
While she has identified cost-generating activities, Maria has not categorized the costs. What is the cumulative value of the copier's end-of-life costs?
In drafting through-life specifications, which additional requirements should the procurement team delineate beyond the physical asset? Choose TWO options that are applicable.
During which phase of the product life cycle is price competition between sellers expected to be most fierce?
What is the purpose of benchmarking?
One drawback associated with employing standards in specifications is that...
Company Q is developing a component for electric vehicles that requires a new type of steel. Production of the new component is expected in 1.5 years, but existing stock will last only three months, with a two-month lead time per batch. What should the company prioritize?
A hospital spends heavily on medical devices, pharmaceuticals, and maintenance supplies. The procurement manager suggests cutting costs by reducing product variations. What does this strategy represent?
Which of the following are examples of open-ended challenges? Choose TWO.
A defense equipment supplier, Stront, struggles with detailed specifications and supply market capacity while developing a new product. What should they consider to refine specifications and speed up time-to-market?
Which of these sectors is most likely to face product scarcity as a result of natural influences?
In this case, a car manufacturer sources rubber parts from Company A. The buyer's specification calls for each piece to be exactly 1 meter long but does not include any tolerance range. Wanting to exceed expectations, Company A’s engineers produce the parts with high precision, limiting variation to just +/- 1mm.. Later, the parts are shaped into circular loops by connecting their ends. These loops are then stretched over other parts, which require them to flex between 80 cm and 110 cm in length. This scenario highlights an example of...?
Which statement accurately describes the product life cycle?
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