Free Category Management Exam L5M6 Exam Practice Test

Caleb is completing a risk assessment on his supply chain using a matrix categorising risks on a scale of 1–5. He identifies one risk with a score of 2. Which category of risk would this fall into?

• Major
• Main
• Moderate
• Minor

Analytics data can be used in Category Management forecasting. Which of the following would be a form of Analytics Data?

• Expertise data e.g. estimated lead times
• Data from the past e.g. historical trends
• Data models and predictions e.g. trends for the future
• Known data e.g. manufacturing capacity

Penelope works for an international manufacturer. Which categories are most likely to be outsourced? [Select TWO]

• Raw materials
• Marketing services
• Warehousing
• Operations
• Facilities management

Which of the following industries is the only one that does not have a specific SIC code?

• Agriculture
• Finance
• Retail
• Services

Which of the following forms of historical data can be used to inform Category Management expenditure? Select THREE.

• Inflation Rate
• Spend Forecast
• Spend Analytics
• Line Item Details
• Ledger Code

Which of the following approaches to cost is the least transparent?

• Price management
• Price acceptance
• Cost down
• Cost out

Porter’s 5 Forces is a useful tool to analyse market factors that affect profitability. Which of the following is not one of the forces?

• Threat of buyers
• Rivalry among existing firms in the industry
• Threat of new entrants
• Threat of substitutions

High exit barriers in a marketplace mean that rivalry between suppliers is low. Is this statement TRUE?

• Yes – rivalry is low as buyer power is strong
• Yes – rivalry is low as supplier power is strong
• No – rivalry between existing suppliers is high
• No – high exit barriers mean no new suppliers will enter the marketplace

When using the Kraljic Matrix to analyse the category of item, which of the following categories does Kraljic recommend be further analysed in conjunction with a comparison of the buyer's strength vs supply market strength?

• Strategic
• Bottleneck
• Leverage
• Non-critical

Category Strategy Development is composed of 4 key stages. Which of the following is the correct order?

• Develop progress tracking plan, define resources needed, roadshow, create strategic plan
• Roadshow, create strategic plan, define resources needed, develop progress tracking plan
• Develop progress tracking plan, define resources needed, create strategic plan, roadshow
• Create strategic plan, develop progress tracking plan, define resources needed, roadshow