Free Supplier Relationships Exam L4M6 Exam Practice Test

A manufacturing company which produces showers struggles to get hold of a certain part called a mixer valve. It is impossible to make the showers without the mixer-valve and there is only one supplier in the market that produces them. The good news is they aren't very expensive to buy. What type of supplier is the supplier of mixer valves?

• leverage
• strategic
• routine
• bottleneck

Which of the following are considered ‘wastes’ which can be removed from a business? Select THREE.

• Over-processing
• Stockout
• Equity
• Transportation
• A. Over-processing B. Stockout C. Equity D. Transportation E. Inventory

Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

• yes- it is important to develop all relationships
• yes- this will improve efficiencies for the buyer
• no- supplier development should only be done with strategic suppliers
• no- supplier development should only be done with tactical suppliers

Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money. What should Fred do?

• Hold an open competition
• Contact current suppliers to try and get a good deal
• Invite known suppliers to bid for the contract
• Put together a business case to make the product in-house

Which of the following relationship types require the most investment from the buyer?

• partnership
• strategic alliance
• single source
• adversarial

Brian Air is a company that is trying to break into the air transport market. Which of the following could be barriers to entry for Brian Air? Select THREE

• economies of scale
• access to capital
• licences and permits
• health and safety
• ethical sourcing

If a stakeholder has high power in a business but isn’t interested in your procurement activity, what should be your management style for dealing with this stakeholder?

• Keep them satisfied – they have high power
• Keep them informed – they have high power
• Manage closely – they’re a key player
• Minimum effort is required as they’re not interested- do nothing

Which of the following is not a type of tender process used in the Public Sector?

• Restricted
• Competitive Procedure with Negotiation
• Competitive Dialogue
• Unrestricted

Mendelow’s Stakeholder Matrix categorises stakeholders into four groups and provides insight into how these stakeholders should be managed. What is a limitation to using this Matrix to categorise stakeholders?

• Nowadays, Stakeholders fall into more than four categories
• The Matrix doesn’t consider the power these stakeholders have
• The Matrix doesn’t consider whether the stakeholder is for or against the activity
• The categories are hard to remember

Jenny is a procurement manager who works in the public sector. She has been charged with organising a tender to source new Xray machines for a hospital and to ensure that they receive ‘value for money’. Which of the following should Jenny consider when drafting her ITT?

• Price only
• Equity
• Whole life costs
• Availability