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At which stage of through-life contract management, procurement team needs to identify sources of risk and the ways to mitigate them?
At which stage of through-life contract management, procurement team needs to identify sources of risk and the ways to mitigate them?A . Specification stageB . Supplier relationship stageC . Tendering stageD . Contracting stageView AnswerAnswer: B Explanation: Risk management has become incredibly complex, especially for capital purchase which requires through-life...
Low switching costs
Low switching costsA . 2 and 4 onlyB . 3 and 4 onlyC . 2 and 3 onlyD . 1 and 4 onlyView AnswerAnswer: C Explanation: Barriers to entry is an economics and business term describing factors that can prevent or impede newcomers into a market or industry sector, and...
This is known as...?
Due to increasing demand, a local restaurant is requesting its fish vendor to supply larger quantity. The restaurant manager also asks the vendor whether it is possible to reduce the total price by 5%. This is known as...?A . Straight rebuyB . Capital purchaseC . Modified rebuyD . New purchaseView...
How much aluminum will Apple need to purchase in next year?
Apple’s CPO is planning a budget for purchasing carbon-free aluminium next year. There are 27.4 tonnes of aluminum in stock, while Apple will need 200 tonnes for production next year and double inventory for production in the following year. How much aluminum will Apple need to purchase in next year?A...
Which of the following factors might prompt an organisation to procure an alternative product?
Which of the following factors might prompt an organisation to procure an alternative product? Select THREE that apply:A . Brand loyaltyB . Relative value to money between optionsC . Buying organisation's propensities to changeD . Easy access to distribution channelE . Threat of retaliationF . Switching costView AnswerAnswer: B, C,...
Which internal stakeholders may help Angelica estimate the breakdown of costs?
Thani Ltd is a fast growing logistics company with a fleet of 20 tractors. To meet Net Zero objective, the company needs to electrify its fleet. Angelica is assigned to investigate the market price of electrifying services. After the investigation, she realises that the current market price is very expensive...
How many products does the company have to sell to achieve break-even point?
Company A sells a product for $100. The total unit variable costs are $60. Fixed costs as in its ac-count are $20,000. How many products does the company have to sell to achieve break-even point?A . 600B . 550C . 400D . 500View AnswerAnswer: D Explanation: Break even point =...
Which type of specification is less time-consuming to develop?
Which type of specification is less time-consuming to develop?A . Outcome-based specificationB . Design specificationC . Conformance specificationD . Technical drawingsView AnswerAnswer: A Explanation: There are two major types of specification: conformance and performance specifications. They have the following characteristics: Since performance specification is often a list of outputs or...
When preparing through-life specification, which of the following requirements should procurement team define besides the physical asset? Select TWO that apply.
When preparing through-life specification, which of the following requirements should procurement team define besides the physical asset? Select TWO that apply.A . Customer serviceB . ObjectivesC . Market analysisD . Logistics and installationE . Available substituteView AnswerAnswer: A, D Explanation: Through-life Management involves the life-cycle management of the products, services...
Is this a correct approach?
Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?A . Yes, decommissioning...
