Question 1

Stephen Jones is assessing the relationships he has with his supplier base. Which of the following would be drivers for Stephen to adopt a partnership relationship with a supplier?

Options :

A : 1 and 2 only

B : 2 and 3 only

C : 1 and 4 only

D : 2 and 4 only

Answer: D

Question 2

The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability. How should the procurement manager include the CEO in the procurement activity?

Options :

A : It is important to keep the CEO informed of all decisions that are made

B : It is important to keep the CEO satisfied as he runs the business

C : The CEO is a key player- so it is important he is involved early in the process

D : The CEO is a key player- so should be given regular updates on progress

Answer: C

Question 3

What is the correct order of the stages of team development?

Options :

A : Forming, storming, norming, performing

B : Forming, norming, performing, storming

C : Storming, forming, performing, norming

D : Storming, forming, norming, performing

Answer: A

Question 4

Which of the following are priority action to be done by both buyer and supplier to ensure that they commit to total quality management (TQM) over the life time of the partnership? Select TWO that apply

Options :

A : Practice competitive tendering process

B : Develop formal review process

C : Only use quantitative KPIs to ensure the measurement accuracy

D : Impose penalty clause on supplier-s poor performance immediately

E : Jointly develop KPIs with supplier

Answer: A,B

Question 5

Why is it more difficult for buyers in the public sector to build relationships with suppliers?

Options :

A : Buyer power is weak in the public sector

B : Buyer power is strong in the public sector

C : There are regulations prohibiting public sector buyers from developing relationships

D : There are regulations that state competitive tender processes must be undertaken regularly

Answer: D