A supplier that supplies more than 50% of their output to one client is known as _____.

Captive supplier

Which of the following statement is correct regarding ‘tactical sourcing’?

It covers businesses requirements that cannot be planned in advance

Which of the following statement are true regarding “Attributes” of quality?

I. An example of attribute is whether a camera has a recording function.

II. An attribute is something needed to be assessed or measured.

III. It is harder to inspect attributes than variables.

I only

Which level of strategy does purchasing strategy belong?

Operational strategy

Which of the following should not be an objective for procurement?

To select the supplier that offers the lowest price at any circumstances

Which of the following is not a factor to determine risk in procurement?

The amount of the unit price of the item to purchase

There are four stages in the evolvement of procurement. Which of the following stage of
evolvement is more relevant to the statement, “Procurement department merely reacts to the
request of other functions”?
Passive

“We spend a lot of money on buying item A. Luckily, there are a lot of suppliers can supply
item A to us at a competitive price. If one supplier gives a trouble on supplying item A, we
can quickly change the supply source without much impact on the operation.”

Which of the category in Kraljic’s portfolio is most relevant to ‘item A’?

Leverage

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 In terms of the organisation of procurement, which of the following is an advantage of
having a decentralised purchasing organisation?
Quicker response to emergency requirements for individual departments

Outsource can reduce firm’s financial risk, because ____.

the firm can transfer their fixed cost into variable cost

In developing procurement strategy, for critical items in Kraljic’s portfolio matrix, it is

recommend to _____.
To establish close relationship or partnership with trustworthy and reliable suppliers

Which of the following is not a consideration in evaluating ‘single vs dual sourcing’?

Whether in-sourcing will reduce the total cost of ownership

Which of the following is not a symptom of strategic drift?

Loss of market share

Which of the following should not be the priority in procurement strategy?

Expanding pool of potential suppliers

“After making decision on what to purchase, procurement officers must know which
suppliers can provide what they want.”

Which of the stage of P2P cycle is most relevant to the above statement?
Source identification

“______” refers to a certain set of activities to perform to complete the process of

purchasing goods and services.
P2P cycle

In assessing the market structure in procurement, the market structure that there is a single
dominant buyer is referred to as _____.
Monopsony

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 Which of the following statement is not true regarding “Outsourcing Methodology”?
Once a contract is signed with suppliers, the duty of contract management must be taken by
firm’s legal department

In developing procurement strategy, for routine items in Kraljic’s portfolio matrix, it is

recommend to _____.
To seek cost-effective procurement techniques, such as e-commerce

What does procurement department must do in order to work with suppliers who want to
seek mutual benefit through superior performance?
To negotiate effectively

“Currently, we do not give much of business to Supplier A. But, we see a lot of potential in
Supplier A. If they perform well on those small orders we give them this month, we will
substantially increase the business with Supplier A in coming months. Fortunately, Supplier
A is well aware of our intention.”

Supplier A must belong to the ____ quadrant in supplier preferencing analysis.

Development

“Let’s talk about Supplier A. Although we are the buyer, but they are much bigger than us.
The business they have with us is only a fraction of their total business. In addition, our
requirement is rather unique. Unfortunately, I don’t think Supplier A will mind even if they lose
the business with us.”

Supplier A must belong to the ____ quadrant in supplier preferencing analysis.

Nuisance

“Let’s evaluate the tender from Firm A. I know they offered the lowest price. I also know that
they have a good capability. But, they have not made any profit for 5 years in a row. In fact,
they have been losing a lot of money for those years. I am reluctant to accept the tender offer
from Firm A.”

The above statement is most relevant to _____ in Carter’s 10 Cs Model.

Cash

Service task variable is most relevant to ________ in Carter’s 10 Cs Model.

Culture and relationship

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 Prompt and accurate quotation, reliable delivery time and willingness to hold inventory are
examples of _____.
Service task variable

Which of the following statements are true regarding the government procurement?

I. The best procurement practices in the private sector can be applied to the
government procurement.
II. Although the procurement principals are the same, the underlying process of
government procurement can be substantially different from that of the private sector.
III. A government can have a great purchasing power if they aggregate all their
spending.
All of the above

Which of the following statement is not true regarding “Stakeholder Engagement in

Procurement”?
In many world class organisations, Procurement is one of the most important and powerful
function or department. Stakeholder Engagement is the process of exerting power over the other
departments.

Which of the following statement is false regarding P2P cycle?

P2P cycle typically starts with the recognition of need and ends with fulfilment of need.

It may not be necessary for procurement staff to involve in all activities of P2P cycle.

Fill in the blanks: When we say “Ferrari is a high quality car”, we means ____ quality. On
the other hand, we say “Honda Civic is a high quality car”, we means ____ quality.
Performance – Conformance

Singapore Airline outsources the supply of inflight meals to Gate Gourmet, a catering
company based in Switzerland. Which of the following does most suitably explain the reason
for outsource?
Focusing on core since cooking food is not airline’s core business

In terms of the organisation of procurement, which of the following is an advantage of

having a centralised purchasing organisation?
Avoid the competition between departments having emergency requirements

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 The practice of “buying goods and services from a company that is also a client of your
company” is known as:
Reciprocity

Which of the following statement is most suitable for the description of the specification
stage of P2P cycle?
It is the stage that procurement department specifies exactly what the company need to buy.

Japanese ‘Kyoryoku Kai’ is an example of ____.

Supplier associations

Before finalising the procurement strategy, it is essential to consider the chosen supplier’s
view on the buyer. The practice is known as ______.
Supplier preferencing

Which of the following statement is true regarding Supplier Evaluation?

The amount of effort to be spent on the evaluation of a supplier should be determined by the
volume and value of the expenditure.

Which of the following is not one of the key drivers for outsourcing?
To reduce human resource risk

Which of the following is most relevant to Taguchi Methods in quality control?

Loss function

“It is not that our sole priority is to obtain the lowest possible price. However, it is still
important to get ‘good price’ from our suppliers.”

To which of the scopes of purchasing does the above statement refer?

To buy efficiently and wisely

“We do not spend that much money on the procurement of item A. However, if we do not
have item A, the entire operation may have to stop.”

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 Which of the category in Kraljic’s portfolio is most relevant to ‘item A’?
Bottleneck

“If we run out of parts and components, our production process has to stop. One of the
prime duties of procurement officer is to make it sure our production process will not be
interrupted due to supply disruption.”

To which of the scopes of purchasing does the above statement refer?

To ensure continuity of supply

Which of the following statement is true regarding ‘terminologies’ in procurement?

“Purchasing” refers to more transactional aspect of procurement activities, such as obtaining
goods and services.

“Procurement” specifically refers to the engagement with suppliers, such as supplier relationship
development.

“Procurement” refers to more strategic aspect of procurement activities, such as supplier

selection.

In today’s many successful organisations, procurement is considered as a function with

strategic importance. Which of the following is NOT an external organisational factor for the
changing role of procurement?
The level and percentage of purchased goods and services on the total cost has been steadily
increased over years.

“Let’s evaluate Firm A as our potential supplier. I know they have good capability. My only
concern is that Firm A has many high-flyer clients. I am not sure whether they can commit to
supply the volume our company needs.”

The above statement is most relevant to _____ in Carter’s 10 Cs Model.

Capacity

The practice of supplier participation in specification writing for a new product is known as
___ .
Early Supplier Involvement

The pattern or plan that integrates an organisation’s major goals, policies and action
sequences into a cohesive whole is known as _____.

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 Strategy

Which of the following statement is true regarding “Specification”?

Performance specification is frequently used in the acquisition of service.

Which of the following statement is not true regarding Statistical Process Control (SPC)?
The basic idea of SPC to employ statistical methods to ensure firm’s quality capability.

The use of control chart is a commonly employed approach in SPC.

Among the risks in procurement, a supplier with poor on-time delivery performance may
impose the ___ risk.
Supply

“As product life cycle gets shorter, procurement must be able to help the organisation to cope
with the time-to-market pressure.”

Which of the following external organisational factor for changing role of procurement is more
relevant to the above statement?
Competitive activity

Advancing technology

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