Question 1

Which of the following involves supplier analysis, make or buy decisions, the consideration of outsourcing and evaluating associated risks?

Options :

A : Tender assessment

B : Sourcing

C : Insourcing

D : Purchasing

Answer: B

Question 2

Price is the only award criterion which helps the buying organization achieve "Value for Money" in every purchases. Is that statement correct?

Options :

A : Yes, because the price will determine whether or not the supplier is competent to satisfy the order

B : No, because "Value for Money" might includes other criteria in stead of only price aspect

C : Yes, because lowest production cost is the only goal of every businesses

D : No, the price is the most crucial criterion in sourcing strategic items

Answer: B

Question 3

Which of the following is an example of intracompany trading? Select TWO

Options :

A : a manufacturer in the UK buys raw copper from a supplier in Chile

B : two companies owned by the same entity conduct business

C : two companies join together to create a new product

D : two departments within the same company collaborate on a project

E : cleverness

Answer: B,D

Question 4

Price is the only award criterion which helps the buying organization achieve "Value for Money" in every purchases. Is that statement correct?

Options :

A : Yes, because the price will determine whether or not the supplier is competent to satisfy the order

B : No, because "Value for Money" might includes other criteria in stead of only price aspect

C : Yes, because lowest production cost is the only goal of every businesses

D : No, the price is the most crucial criterion in sourcing strategic items

Answer: B

Question 5

Sourcing products internationally involves extra considerations when looking at the price of the item. Which of the following are additional price considerations for international sourcing? Select TWO

Options :

A : exchange rate

B : total life cycle costs

C : tariffs

D : batch quantities

E : tax

Answer: A,C

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