Sourcing Management Objectives Set 2

16/08/2020 1 By indiafreenotes

Q1. Which of the following is a definition of the term ‘supply chain’?

  1. The way in which information passes from user to procurement supplier
  2. The range of suppliers used by a procurement organisation
  3. The network of organisations and activities involved with the flow and transformation of goods
  4. The types, frequency and organisation of deliveries to the end user


Q2. A primary aim of a procurement professional must be to achieve ………

  1. Value for money
  2. Stock control
  3. Inventory management
  4. Outsourcing


Q3. Which of the following is a key part of a decision to outsource?

  1. Make or buy
  2. Win or lose
  3. Buy or sell
  4. Pass or fail


Q4. In order to ensure value for money organisations must strive for……..…

  1. Timely delivery
  2. Efficient and effective administration
  3. Short supply chains
  4. Inventory management


Q5. Exploiting labour is an example of …

  1. Poor ethical practice
  2. sound business practice
  3. good ethical practice
  4. progressive management


Q6. Customers are …

  1. an example of an external stakeholder in the supply chain
  2. an example of an internal stakeholder in the supply chain
  3. not considered to be part of the supply chain
  4. responsible for the management of the supply chain


Q7. Costs that are directly attributable to the end product or service are known as what?

  1. Capital costs
  2. Operational costs
  3. Direct costs
  4. Indirect costs


Q8. Kaif works for a company that buys in diamonds and creates jewellery. In which sector is Kaif employed?

  1. Primary
  2. Tertiary
  3. Secondary
  4. Quaternary


Q9. The end user of beneficiary of a product or service is best described as what?

  1. A customer
  2. A consumer
  3. A supplier
  4. A buyer


Q10. Dhoni has a meeting with a business that supplies raw materials to a supplier from which dhoni buys finished products. Dhoni knows that working with suppliers throughout the supply chain can aid transparency. What is the name for the levels of suppliers in a supply chain?

  1. Tiers
  2. Stages
  3. Steps
  4. Traders


Q11. What is the terminology used whereby all associated costs of a procurement are taken into consideration?

  1. Total cost of buying
  2. Total cost of procurement
  3. Total cost of purchasing
  4. Total cost of ownership


Q12. Which type of function is best suited to being outsourced?

  1. High operational performance, high strategic performance
  2. High operational performance, low strategic performance
  3. Low operational performance, low strategic performance
  4. Low operational performance, high strategic performance


Q13. How many stages are there within the procurement cycle?

  1. 10
  2. 11
  3. 12
  4. 13


Q14. For many years Lynn has entrusted a strategic supplier to stitch her saddles that she then sells online across the world. Due to financial constraints Lynn has taken the decision to do the needlework (stitching) herself from next month. What is the name of the process whereby Lynn will do something herself that used to be contracted to a supplier?

  1. Outsourcing
  2. Off shoring
  3. Insourcing
  4. In shoring


Q15. What is the main purpose of issuing a pre-qualification questionnaire in procurement?

  1. To obtain the best price
  2. To engage with the most suitable suppliers
  3. To achieve the lowest cost
  4. To engage with high volume producing suppliers