#1
What is the primary objective of strategic procurement?
To reduce costs
To build long-term supplier relationships
To increase inventory levels
To expedite the purchasing process
#2
Which of the following is NOT a key component of supply management?
Sourcing
Negotiation
Demand forecasting
Inventory management
#3
What is the role of a procurement manager?
Handling employee payroll
Managing customer complaints
Developing procurement strategies and policies
Creating marketing campaigns
#4
Which of the following is NOT a potential risk in procurement and supply management?
Supplier bankruptcy
Quality control issues
Decrease in demand
Supply chain disruptions
#5
Which of the following is NOT a benefit of effective supply chain management?
Reduced costs
Increased flexibility
Enhanced customer satisfaction
Decreased lead times
#6
What is the purpose of a request for proposal (RFP) in procurement?
To solicit bids from potential suppliers
To evaluate employee performance
To generate invoices
To conduct market research
#7
What is the strategic focus of procurement?
Short-term cost minimization
Managing supplier relationships
Optimizing inventory turnover
Maximizing production output
#8
Which procurement strategy focuses on developing close relationships with a select group of suppliers?
Single sourcing
Dual sourcing
Strategic sourcing
Relationship sourcing
#9
What is the key benefit of implementing e-procurement systems?
Reduced supplier diversity
Increased paperwork
Improved transparency and efficiency
Higher procurement costs
#10
Which of the following is an example of a procurement KPI (Key Performance Indicator)?
Total number of employees
Average daily website visitors
Percentage of on-time deliveries
Number of social media followers
#11
What is the purpose of conducting a SWOT analysis in procurement?
To evaluate supplier performance
To identify strengths, weaknesses, opportunities, and threats
To negotiate pricing terms
To assess market trends
#12
What is the main objective of implementing green procurement practices?
To increase costs
To enhance environmental sustainability
To reduce supplier relationships
To prioritize speed over quality
#13
What is the purpose of a procurement audit?
To assess the financial performance of suppliers
To evaluate the effectiveness of procurement processes
To identify potential suppliers
To negotiate contracts
#14
What does the term 'total cost of ownership' (TCO) in procurement refer to?
Initial purchase price only
All costs associated with owning and using a product or service
Supplier's overhead costs
Government taxes
#15
Which procurement negotiation strategy involves both parties working together to achieve mutual benefits?
Distributive negotiation
Competitive negotiation
Integrative negotiation
Concessionary negotiation
#16
Which procurement approach emphasizes continuous improvement and long-term supplier partnerships?
Transactional procurement
Collaborative procurement
Emergency procurement
Speculative procurement
#17
What is the role of procurement in risk management?
To ignore potential risks
To transfer all risks to suppliers
To identify, assess, and mitigate risks
To avoid all supplier relationships
#18
What is the difference between strategic sourcing and tactical sourcing?
Strategic sourcing focuses on long-term objectives, while tactical sourcing focuses on short-term gains
Strategic sourcing involves routine purchasing activities, while tactical sourcing involves strategic supplier selection
There is no difference between the two
Tactical sourcing is only applicable to small organizations, while strategic sourcing is for large corporations