Sourcing Management Objectives Set 1

Q1. Which of the following is the opposite of just in time?

• Stock control
• TQM
• Just in case stock management
• Kaizen

 

Q2. A drawback to a business of using just in time stock control is:

• High insurance costs
• Stock could quickly become out of date or obsolete
• Storage costs will be high
• Delays in deliveries could result in idle resources

 

Q3. Which of the following businesses would be best suited to a just in time stock control system?

• Car manufacturer
• Nationwide footwear retailer
• Wholesaler of building supplies
• School uniform retailer

 

Q4. Which of the following would a new fair trade café consider as the most important factor when considering its choice of suppliers?

• Price
• Reliability
• Flexibility
• Ethical values

 

Q5. The business term that involves choosing a supplier, agreeing what to buy at a certain price and by when is called:

• Logistics
• Supply chain management
• Stock control
• Procurement

Q6. Which of the following is a benefit to a supplier of consistently delivering products on time?

• Repeat orders
• Lower prices
• Lower storage costs
• Minimal buffer stock held

 

Q7. Supply chain management is increasingly difficult and complex due to:

• The increased pace of globalization
• The UK’s ageing population
• Economies of scale
• Improvements in communication systems

 

Q8. Which of the following job roles would be found within the logistics department for a large supermarket chain?

• Customer services manager
• Warehouse manager
• Retail manager
• Human resources manager

 

Q9. Which area of business will Amazon particularly focus upon to ensure customer deliveries arrive on time?

• Finance
• Sales
• Logistics
• Marketing

 

Q10. The time difference between a business ordering and receiving stock is called the:

• Reorder quantity
• Lead time
• Buffer stock
• Reorder level

 

Q11. Which of the following is a main reason why a supplier may be reluctant to supply a new business with stock?

• The quality of the supplies may not meet customer expectations
• The new business may request large volumes of stock
• The new business may demand reasonable prices
• High failure rate of new businesses

 

Q12. Which of the following is a benefit to a business of having an efficient procurement department?

• Improved levels of customer service
• Increased levels of staff motivation
• Higher sales revenue
• Lower unit costs

 

Q13. Which of the following is the first stage in a supply chain for a chocolate bar?

• The supplier of cocoa beans
• The manufacturer of the chocolate bar
• Transportation between each stage of the supply chain
• The retailer

 

Q14. Which of the following is a benefit to a business of reducing its production times?

• It will hold less stock
• It sales will increase
• Its staff will be more motivated
• It could create a competitive advantage

 

Q15. A business getting good value when buying products means that it will:

• Always get the cheapest price
• Always get the highest quality
• Get the right balance between price and quality
• Charge its customers the lowest price possible

 

Question 16. The terms purchasing and procurement should not be seen as synonymous. As such, which of the following statements do you think has greatest validity?

• Procurement has a broader meaning than purchasing
• Purchasing has a broader meaning than procurement
• Procurement is broadly equivalent to purchasing
• None of the above

Question 17. The electronic integration and management of all procurement activities including purchase request, authorization, ordering, delivery and payment between a purchaser and supplier is known as:

• E-procurement system
• E-procurement
• E-procurement process
• All of the above

 

Question 18. The range of potential options for improving purchasing processes are indicated by benefits described by the Chartered Institute of Purchasing and Supply such as:

• Evaluation of end-to-end trading cycles
• Content management
• Multimedia
• All of the above
• None of the above

 

Question 19. Generally, which sequence is most typical of the procurement process?

• Originator to buyer to approver to supplier
• Originator to approver to buyer to supplier
• Supplier to originator to approver to buyer
• Approver to originator to buyer to supplier
• None of the above

 

Question 20. E-procurement aims to improve performance of what is known as the ‘five rights of purchasing’. One aim of e-procurement is increasing savings by sourcing items:

• Of the right quality
• At the right price
• Of the right quantity
• From the right source

 

Question 21. Another aim of e-procurement is increased choice of supplier leading to sourcing items:

• Of the right quantity
• At the right price
• From the right source
• Delivered at the right time

           

Question 22. A recent simple classification of different types or applications of e-procurement was produced by Smart. Which of the following is NOT one of these?

• E-tendering
• E-informing
• E-sourcing
• E-transparency

           

Question 23. What is the term used to describe where supply chain partners manage the replenishment of parts or items for sale? They do this through the sharing of information on variations in demand and stock levels for goods used for manufacture or sale.

• Efficient customer response
• Vendor-managed inventory
• E-procurement drivers
• E-business value and stock level grid

           

Question 24. There are barriers and risks involved in adopting e-procurement. Which of the following is NOT regarded as a risk or barrier?

• Negotiated procurement benefits may be shared with other exchange users who may be competitors
• Possible positive perception from suppliers
• Creation and cost of catalogues
• Competition issues

           

Question 25. In future, some suggest that the task of searching for suppliers and products may be taken over by a programme which automatically gathers information from the Internet:

• Software intelligent agents
• Metamediaries
• Electronic B2B marketplaces
• Spider search engines

           

Question 26. Of the following, which is an e-procurement benefit related to budgetary control?

• Reduced purchase cycle
• Rules to limit spending and improved reporting facilities
• Enabling them to concentrate on strategic purchasing issues
• Correcting errors is traditionally a major part of a buyer’s workload

           

Question 27. Which of the following describes the stock control system element of an e-procurement system?

• Re-ordering is automated when the number in stock falls below re-order thresholds
• Staff in the buying department to enter an order which can then be used by accounting staff to make payment when the invoice arrives
• Integrates the entry of the order by the originator, approval by manager and placement by buyer
• Possible to integrate all e-procurement functionality and may also include integration with suppliers’ systems

           

Question 28. Production related procurement refers to the purchasing of:

• Furniture
• Information systems
• Office supplies
• Raw materials

                       

Question 29. Negotiated contracts with regular suppliers typically in long-term relationships is an example of:

• MRO sourcing
• Systematic sourcing
• E-procurement
• Spot sourcing

 

Question 30. Fulfillment of an immediate need, typically of a commoditised item for which it is less important to know the credibility of the supplier is an example of:

• MRO sourcing
• Spot sourcing
• E-procurement
• Systematic sourcing

           

Question 31. For B2B transactions involved with e-procurement, the merchant site should facilitate:

• Modified rebuys
• Partially complete orders
• Straight rebuys
• Initial purchases
• All of the above