1.

When defining the 5 rights of procurement and supply we should consider …

 quality,
 quantity
 source
 price
 target,
 time
 tangent

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

 Make or buy
 Win or lose
 Buy or sell
 Pass or fail

3. In order to ensure value for money organizations must strive for

 timely delivery
 efficient and effective administration
 short supply chains
 inventory management

4. Customers are …

 an example of an external stakeholder in the supply chain

 an example of an internal stakeholder in the supply chain
 not considered to be part of the supply chain
 responsible for the management of the supply chain

5. Which of the following explains the category of supply term ‘indirect supplies’?

 Products used by a business which are bought through a tiered supplier

 Products used by a business which are not specified by a buyer
 Products used by a business that do not form part of the end product
 Products used by a business which are bought through a supply chain
6. Which of the following is an extra activity required when assessing quotations for capital
goods purchases?

 Checking the supplier’s terms and conditions of contract

 Establishing the specification
 Calculating the total cost of ownership
 Obtaining a framework agreement

7. Strategic alliance goals is?

 Cost reeducation
 Interaction
 Quality improvement
 Information

8. Full sharing of goals strategies and tactics as internal information

 Partnership
 Relationship
 Collaboration
 Merger and acquisitions
 None the above

9. Which are the longer- term contacts in business Relationship?

 Alliances
 One culture
 Extensive communication
 New product introduction
 None the above

10. what is partnership in business

 longer- term contracts
 awareness of culture
 high level of trust
 Collaboration strategic alliance
 None the above
11. SRM is methodology to structure and support relationship with suppliers that will assist in

 Improving processes in an ongoing manner

 Reducing procurement and excess inventory costs
 Supporting a customer-focused business that delivers product/service
 All the above

12. The five “right objectives” of purchasing are:

A) Quality, Quantity, Price, Time, Place

B) Cost, Service, Specs, Time, Quantity

C) Place, Time, Price, Ethics, Contract

D) Agent, Supplier, Contract, Price, Quantity

E) Logistics, time, Quality, Price, Quantity

13. Strategic sourcing differs from tactical purchasing in that this activity periodically:

A) analyzes the organization’s spend

B) analyzes the supply market

C) develops sourcing strategy and plans

D) outsources basic business services such as security

E) A, B &C
14. Supply management’s impact on the bottom line includes the ability to increase sales by:

A) Reducing the development time of new products by using cross functional teams
including suppliers

B) Obtaining the lowest possible prices

C) Finding suppliers with the fastest delivery times

D) all of the above

E) None of the above

15. “Lean Thinking” can help reduce total cost of ownership (TCO), this means the supply team in
the entire “chain” must work to:

A) Lower conversion cost

B) Reduce cycle time cost

C) Reduce risk cost

D) Reduce non-value costs

E) reduce processing costs

16. The major reason supply management can greatly improve a firm’s return on investment (ROI)
is:

A) The reduction of post ownership costs

B) The reduction of downtime costs

C) The reduction of quality costs

D) The reduction of acquisition cost

E) every dollar saved in purchasing is = to a new dollar of profit

17. Which statement about SM is not true?

A) SM recognizes the global environment

B) SM is a philosophy

C) SM is synonymous with logistics

D) SM is proactive

E) SM spans functional boundaries

18. Which statement about SM is not true?

A) SM spans company borders

B) SM focuses on optimization of the supply chain

C) SM requires change from upper management

D) SM requires continuous improvement

E) SM relies on mathematical models

19. Which of the following is not a strategic supply management activity?

A) Activity Based Costing

B) Environment Monitoring

C) Integrated Supply Strategy

D) Commodity Strategies

E) Data Management

20. Which of the following is not a strategic supply management activity?

A) Corporate Strategic Plans

B) Simulation Modeling

C) Strategic Sourcing

D) Strategic Supply Alliances

E) Supply Chain / Supply Networks

 21. Which of the following is not a strategic supply management activity?

A) Environment Monitoring

B) Supply Chain / Supply Networks

C) Operations Research

D) Social Responsibilities

E) Understand Key Supply Industries

22. Of the purchasing/supply responsibilities and activities, ______ becomes more important as
the function becomes responsible for supply and value network chains:

: A) buying supply management

B) Executive management

C) Strategic planning and research work

D) Contract and relationship management

E) Supplier liaison work

23. Managing supplier relationships, contracts, placement of purchase orders and other
transaction focused activities are _____ responsibilities:

A) Strategic

B) Short term

C) Long term

D) operational
E) action

24. Which of the following is not one of the three types of buyer supplier relationships presented
in the textbook?

A) Transactional

B) Transcendental

C) Collaborative

D) Alliance

25. Which of the following is not a transactional relationship characteristic?

A) Long-term contract

B) An absence of concern

C) One of a series of independent deals

D) Costs, data and forecasts are not shared

E) Price is the focus of the relationship

26. Which of the following is not one of the outcomes that collaborative relationships tend to
foster?

A) Longer term contracts

B) Reduction of risk for suppliers

C) Reducing total costs

D) A focus on price

E) Improvement of processes

27. Which of the following is not one of the outcomes that collaborative relationships tend to
foster?

A) Decreased information sharing

B) Increased investment in R & D

C) Increased investment in training

D) Increased investment in equipment

E) Better focus on customer needs

28. Which of the following is not one of the benefits of supply alliances?

A) Lower total costs

B) Reduced time to market

C) Increased inspection levels

D) Improved technology flow from suppliers

E) Improved continuity of supply

29. Developing and managing collaborative relationships require supply professionals that
possess the all of the following skills and attitudes except one in the following list. Which skill
in the following list is not required?

A) Recognize the benefits of collaboration

B) Ability to identify, obtain and use data

C) Able to work in chaos and uncertainty

D) Agile, flexible, and highly

E) Ability to develop information systems

30. Which of the following is not an action to develop and manage trust?

A) Contract relations focus on continuous improvement

B) Team and relationship skills are developed early

C) A contracting philosophy and a legal infrastructure are designed to the relationship

D) Develop multiple backup suppliers to assure continuity of supply

E) Institutional trust is measured and managed

31. Which of the following is a major element typically included in a “to buy” cost analysis?

A) Delivered purchased material costs

B) Transportation costs

C) Direct labor costs

D) Any follow-on costs stemming from quality and related problems

E) Incremental inventory carrying costs

32. What’s is green supply management?

 Reduction of energy use & renewable alternatives

 Recycling
 Decreasing quantities of waste
 Cutting water volumes & countering contamination
 All the above
 None the above

33. What is a Transactional furcation in supply chain management?

 Process
 co
 Strategic souring
 Board range
 None the above
34. Low risk low value item and services that typically do not enter the final product is?

 Emphasis on valve
 Enhanced team work and professionalism
 Strategic sourcing
 Low visibility in the supply chain
 None the above

35. Low risk low value item and services that typically do not enter the final product is?

 Traditional purchasing
 Generics
 Business processes
 More meaningful supplier relationship
 All the above

36. Which of the following is not part of strategic sourcing

 Low visibility in the supply chain

 Collaboration
 High visibility
 All the above
 37. E-Procurement can deliver significant __________ cost
Savings to businesses companies and marketplaces.

 buy-side
 sell-side
 transportation
 storage
 inventory

38. The following are the features of reverse auction process

Except the one ___________...

 easy process
 global reach
 transparency
 time managed
 suppliers knows each other

39. There are three process cycles in procurement such as

, evaluating vendors and calling the suppliers for
Submitting bids. All these processes are _______ in an e-procurement
Process.

 not-covered
 simplified
 sometimes overlooked
 One of them by-passed
 none of the above
40. Alliance partners in supply chain are not the ones
Amongst the following listed below ___________.

 suppliers
 vendors
 retailers
 distributors
 employees

41. Alliance is cooperation or collaboration which aims for

a _______ where each partner hopes that the benefits
From the alliance will be greater than those from individual
Efforts.

 synergy
 inventory management
 speed to market
 cost reduction
 survival

42. Strategic alliances in supply chain are except the one

__________.

 third party
 fourth party logistics
 retailer-supplier partnerships
 stand alone
 distributor integration
43. Supply chain improvement areas available to firms
Through strategic alliance relationships ___________.

 managing supply channel conflict

 on-time product delivery
 improved supply chain productivity
 prompt response to complaints
 all the above

44. The strategic alliance relationship depends on the

Following, except __________.

 advanced information systems

 top management commitment
 trust amongst the partners
 inventory ownership
 financial measures

45. Strategic sourcing is a disciplined, systematic process for

Reducing the total costs of __________ purchased materials,
Products and services while maintaining or improving levels of
Quality, service and technology.

 externally
 collectively
 centrally
 inspected
 imported
 46. Managing supplier relationships, contracts, placement of purchase orders and other
transaction focused activities are _____ responsibilities:

: A) Strategic

B) Short term

C) Long term

D) operational
E) action

47. Which of the following is not one of the three types of buyer supplier relationships presented
in the textbook?

A) Transactional

B) Transcendental

C) Collaborative

D) Alliance

48. Which one of the following statements is TRUE about purchasing?

 Purchasing's primary role is to satisfy the firm's long-term supply needs.

 Purchasing's primary role should be placing and tracking orders.
 Purchasing's primary role is to negotiate lower prices.
 Purchasing's primary role is to negotiate prices and delivery dates.

1. Managing contract and blanket order releases are operational responsibilities.