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1. What is the purpose of sending value engineering analysis to external suppliers?

2. Halfords is a major bicycle and car parts retailer with long history in the market. Its suppliers are plentiful and there is no threat of forward integration. Some other smaller retailers are applying 3D-printing technology to make personalized bicycle parts but their market share is relatively low. 3D-printing technology is an example of which competitive force?

3. Which of the following problems may be identified as closed problems? Select TWO that apply:

4. Which of the following factors should be assessed to understand the competitiveness of a supply market?

5. 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?

6. This is the information on an organisation’s activities over the past year

• Sale were $5,000,000. The value of accounts receivable was $450,000 at the start of the year and

$525,000 at the end of the year

• The value of direct costs was $2,500,000 and 75% of this was bought on credit

• Indirect costs were $3,000,000 and 25% of this was bought on credit

• During the year the organization spent $1,500,000 on new assets and sold $150,000 of old assets. $1,000,000 of the spend on assets was funded by a bank loan

• The organization declared a dividend of $200,000 at the end of the year but this was not paid for another two months

• Opening balance was $175,000

Which of the following is the bank balance of that organization at the end of the year?

7. Which of the following areas is specified by ISO/IEC 27001 family?

8. Which of the following is the technology that disrupts traditional retail?

9. Which of the following activities are considered as primary activities of an organization according to Porter's value chain? Select TWO that apply:

10. Which of the following are the fair and reasonable comparators in price analysis? Select TWO that apply:

11. Facing fiercer competition at home and abroad, IKEA, the leading furniture retailer, needs to im-prove its competitiveness. In order to do this, IKEA must decrease operating costs and improve quality of current and new retail stores. The company establishes a project team. The job of the team is to collect data on performance from multiple stores in several countries, then select the best performing one. The team will work closely with best performing store and study its processes. After the research, the team will recommend best practices to other retail stores. IKEA management can also apply these practices to new stores in the future.

Which of the following correctly describe the process undertaken by IKEA project team?

12. Which of the following are typically included in a conformance specification? Select TWO that apply.

13. XYZ Ltd is producing an engine which consists of many components. The procurement manager wants to find cost reduction opportunities and minimise part varieties.

Which of the following may help her to achieve these objectives?

1. Value analysis

2. Segment analysis

3. Variety reduction

4. Standardisation

14. What are the typical purposes of specifications in procurement and supply? Select TWO that apply.

15. Which of the following are fixed costs? Select TWO that apply.

16. Which of the following is likely to be an outcome of over-specification?

1. Ineffective Service Level Agreement (SLA)

2. Higher supplier costs

3. Increased Supplier Relationship Management (SRM)

4. Reduced inventory costs

17. A procurement manager consolidates the company expense on printing and office supplies into broader range of spend category. Other senior managers are concerned that it may increase company’s spend.

Is that concern justified?

18. 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 and unsustainable for her company. She decides to break down the costs before negotiating with the suppliers.

Which internal stakeholders may help Angelica estimate the breakdown of costs? Select TWO that apply.

19. Which of the following specific markets engage in creation, liquidation and change of ownership of stock?

20. A CPO is making a business case for acquiring a new computer system. He has set out objective, generated options, cost and benefit of each option and implementation plan.

Which of the following elements should be included in the business case?

21. Which of the following factors should be assessed to understand the competitiveness of a supply market?

22. Is ISO 14000 a series of environmental standards?

23. The position of a product in its life cycle can affect the price that suppliers set.

Is this statement correct?

24. Which of the following indicates types of waste that procurement department concentrates on when adopting Lean methods?

25. A procurement manager decided to use a conformance specification in a request for quotation (RFQ) for the manufacturing of a specialist item designed by their company. The company does not have the capability to manufacture the item in-house, but requires the item to be made to their detailed specification.

Was this the correct thing to do?

26. A global manufacturer is struggling to compete with rival firms investing heavily in advanced robotics. This would be the biggest barrier to entry in which market?

27. Interserve is a construction contractor in UK. When receiving a huge and complex project, Inter-serve’s procurement manager assesses the risks by quantifying them and recommends other stake-holders to plan mitigating actions.

Is the procurement manager’s action justified?

28. Which factor would increase a buyer’s bargaining power in a negotiation?

29. 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 of fixed and variable costs in that industry, which of the following technique should be adopted by the procurement manager?

30. When preparing through-life specification, which of the following requirements should procurement team define besides the physical asset? Select TWO that apply.

31. 1.A company uses eight different floor cleaning products at different premises and has decided to standardise on just one. This product is available from a large number of suppliers.

What benefits

should the company expect to achieve?

32. Which of the following bodies provides standards for the products and services in the US?

33. A UK engineering company imports more than 75% of its products from the USA. The finance manager is creating the budget for next year and has told the procurement manager that, to do this, finance simply add a published inflation index to prices paid last year.

Is this a way for a business to precisely predict prices for next year?

34. Which of the following are recognised competitive strategies?

1. Winning new business at all cost

2. Getting more customers’ attention

3. Creating stand-out products and brands

4. Focusing on niche market

5. Acquiring competitors

35. Which of the following are examples of environmental and social criteria in supplier tender evaluation?

1. Compliance with labour standards

2. Carbon footprint measures

3. Compliance with technical specification

4. After-sales maintenance service levels

36. 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?

37. As the lead procurement manager you have been asked to compile a business case for a large project.

Which of the following should you include in the business case?

1. Costs and risks

2. List of large suppliers

3. Business benefits

4. Informal recommendation

38. OMK is a Russian steel firm that is expanding market abroad. It plans to build a steel plant in a foreign country. Due to intricate technical requirements, the plant design will be very complex. Procurement department or technical department alone cannot draft the specification. OMK senior management decides that this task must be treated as a project.

Which of the following should be done before writing the specification for new steel plant?

39. The bargaining strength of suppliers is likely to be high in which of the following situations? (Select TWO)

40. A department is writing a business case for an expensive capital purchase.

What should be included?

1. Terms and conditions of contract

2. Tender evaluation criteria

3. Degree of added value

4. Financial plan