Question 1

A supply management audit finds that sole source purchases have increased significantly due to the inexperience of the sourcing team, and that the waiving of competition is not justified in many cases. This has resulted in increased costs, as well as noncompliance with organizational policies requiring competitive solicitations. Which of the following is the BEST way to rectify this situation?

Options :

A : Train staff in solicitation policies and practices

B : Report noncompliance to management in user departments

C : Improve audit procedures to identify problem areas sooner

D : Make sole source review a key performance indicator (KPI)

Answer: A

Question 2

In which phase of team development do group members challenge each other and compete against one another to assume leadership?

Options :

A : Performing

B : Adjourning

C : Storming

D : Norming

Answer: C

Question 3

After analyzing its relationships with other departments, supply management decides to revise its stocking levels and order forecasting in order to streamline processes and reduce costs. Which of the following is the BEST way for the supply management organization to introduce these changes to the departments involved?

Options :

A : Meet with internal customers to address any changes that might impact their operations

B : Demonstrate the long-term savings to be realized

C : Obtain endorsements from other departments

D : Use best-in-class comparisons to show how the new policies will advance the organization

Answer: A

Question 4

Which of the following is the FIRST step that a supply manager should take to ensure proper social responsibility in the management of regulated materials?

Options :

A : Embed contract language with criteria to handle disposal of regulated materials

B : Determine the relevant regulatory agency criteria to follow

C : Select only certified suppliers for sourcing events

D : Implement a proactive approach when considering regulated materials

Answer: B

Question 5

MNO, Inc. hires a contractor to renovate its office space. The firm pays a deposit for new countertops for the office’s cafeteria, but the contractor states that it will not be able to install the new countertops by the agreed upon date. The space needs to be completed on time for a planned grand opening event. Which of the following is the BEST course of action for MNO to take?

Options :

A :

Withhold further payment to the contractor until the contractor makes arrangements to complete the contract as negotiated

B :

Seek remedy from the contractor for the uncompleted portion of the contract and award the remaining portion to another supplier

C :

Dismiss the contractor, request a refund of all deposits, and hire the second best contractor from the bid process

D :

Determine when the contractor can complete the cafeteria space, and schedule the event for one week later

Answer: B

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