Question 1

A U.S. company wants to expand its business and market to the government. This will requiregovernment approval of a small business plan, encompassing proposed spend with several categories of small businesses. The firm’s supply manager has been asked to investigate the requirements to comply with this new market. Which of the following is the BEST course of action for the supply manager to take in this situation?

Options :

A : Contact the National Bureau of Labor Standards

B : Contact the Library of Congress and use one of its small business lists

C : Benchmark the best practices of several leading competitors

D : Review Federal Acquisition Regulations Part 19

Answer: D

Question 2

A supply manager for JKL, Inc. has been asked to develop a risk management plan for suppliers. The supply manager has identified the sources of risk and the probability of occurrence. In order to develop a risk management process, the supply manager should NEXT

Options :

A : execute the risk management strategy

B : allocate resources to address the risk

C : develop a risk profile

D : estimate the likely impact of the risk

Answer: D

Question 3

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 4

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 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