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Is Robert's action reasonable?
Robert is a senior buyer at MMC Construction Ltd. His company is doing multiple development projects in the country, which increases procurement workload significantly. Meanwhile, most of the tasks are handled manually, which causes bottlenecks in the workflows. The procurement team is overwhelmed by the workload and complains from other...
Which of the following is a challenge of making a business case for straight re-buys?
Which of the following is a challenge of making a business case for straight re-buys?A . Terms and conditions B. Research of procurement process C. Effective inventory control D. Identifying suitable suppliersView AnswerAnswer: C Explanation: For straight re-buy, the specifications for the products are known. Generally, there will be an...
Is the procurement manager’s opinion correct?
A procurement manager is writing a conformance specification for a non-core component. She thinks that if the requirements in specification are higher than ISO standards, her company can achieve greater cost-savings. Is the procurement manager’s opinion correct?A . No, because higher specification may incur additional costs for the buyer B....
Threat of backward integration is significant
Threat of backward integration is significantA . 3 and 4 only B. 2 and 3 only C. 1 and 4 only D. 2 and 4 onlyView AnswerAnswer: C Explanation: Price sensitivity is the degree to which the price of a product affects consumers' purchasing behaviours. Buyer power will be stronger...
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...
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 rebuy B. Capital purchase C. Modified rebuy D. New purchaseView...
Information security
Information security 2 and 4 onlyA . 1 and 2 only B. 2 and 3 only C. 3 and 4 onlyView AnswerAnswer: B Explanation: ISO 14001:2015 specifies the requirements for an environmental management system that an or-ganization can use to enhance its environmental performance. ISO 14001:2015 is intended for use...
In order to estimate an approximate value of fixed and variable costs in that industry, which of the following technique should be adopted by the procurement manager?
A procurement manager is requested to source a major component. She needs information on sup-pliers’ direct and indirect cost, fixed and variable costs to prepare for negotiations. Therefore, she collects 17 annual reports from potential suppliers who are competing in the same industry. In order to estimate an approximate value...
This arrangement is known as...?
A procurement manager is discussing with other stakeholders about the scope and the implementation of the upcoming construction project. A stakeholder argues that the construction projects are often risky as the overall scope of the work can't be accurately estimated from the beginning. Furthermore, the project spans over a long...
What should procurement manager of DfT do first to manage risk in making the specification?
Department for Transport (DfT) needs to buy new locomotives to expand the capacity of trains fleet. In 2009, they were criticized for beginning the procurement “without any clear idea of how many trains would be needed, which routes they would run on and what form of power would be required”....
