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Is the procurement manager’s opinion correct?
A procurement manager is writing a conformance specification for a non-core component. She thinks that if the requirements in specification are higher than ISO standards, her company can achieve greater cost-savings. Is the procurement manager’s opinion correct?A . No, because higher specification may incur additional costs for the buyer B....
Threat of backward integration is significant
Threat of backward integration is significantA . 3 and 4 only B. 2 and 3 only C. 1 and 4 only D. 2 and 4 onlyView AnswerAnswer: C Explanation: Price sensitivity is the degree to which the price of a product affects consumers' purchasing behaviours. Buyer power will be stronger...
Is this a correct approach?
Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?A . Yes, decommissioning...
This is known as...?
Due to increasing demand, a local restaurant is requesting its fish vendor to supply larger quantity. The restaurant manager also asks the vendor whether it is possible to reduce the total price by 5%. This is known as...?A . Straight rebuy B. Capital purchase C. Modified rebuy D. New purchaseView...
Information security
Information security 2 and 4 onlyA . 1 and 2 only B. 2 and 3 only C. 3 and 4 onlyView AnswerAnswer: B Explanation: ISO 14001:2015 specifies the requirements for an environmental management system that an or-ganization can use to enhance its environmental performance. ISO 14001:2015 is intended for use...
In order to estimate an approximate value of fixed and variable costs in that industry, which of the following technique should be adopted by the procurement manager?
A procurement manager is requested to source a major component. She needs information on sup-pliers’ direct and indirect cost, fixed and variable costs to prepare for negotiations. Therefore, she collects 17 annual reports from potential suppliers who are competing in the same industry. In order to estimate an approximate value...
This arrangement is known as...?
A procurement manager is discussing with other stakeholders about the scope and the implementation of the upcoming construction project. A stakeholder argues that the construction projects are often risky as the overall scope of the work can't be accurately estimated from the beginning. Furthermore, the project spans over a long...
What should procurement manager of DfT do first to manage risk in making the specification?
Department for Transport (DfT) needs to buy new locomotives to expand the capacity of trains fleet. In 2009, they were criticized for beginning the procurement “without any clear idea of how many trains would be needed, which routes they would run on and what form of power would be required”....
Which of the following should be adopted by the company?
A company is analysing its existing product's components and aims at reducing costs without damaging customer value proposition. They want to check which components are critical and which are unnecessary. Which of the following should be adopted by the company?A . Under specification B. Value engineering C. Value analysis D....
Which of the following method is that purchaser applying?
A purchaser is looking for alternative supplies if there is a major disruption to their supply chain, including logistics, manufacturing and all support services. Which of the following method is that purchaser applying?A . Treat the risk B. Terminate the risk C. Tolerate the risk D. Transfer the riskView AnswerAnswer:...
