Global Supply Chain Management
Practice Questions
Course Introduction
Global Supply Chain Management explores the strategies, processes, and technologies that organizations use to source, produce, and distribute goods and services across international borders. The course examines logistical challenges, supply chain design, risk mitigation, and sustainability within a global context. Students learn how companies manage relationships with suppliers, manufacturers, and customers worldwide, integrate supply chain networks, and navigate trade regulations, cultural differences, and emerging technologies to create efficient, resilient, and competitive global operations.
Recommended Textbook
Purchasing and Supply Chain Management 7th Edition by van Weele
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15 Chapters
909 Verified Questions
909 Flashcards
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Chapter 1: The Role of Purchasing in the Value Chain
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60 Flashcards
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Sample Questions
Q1) Which of the following terms refers to products,indirect materials or consumable items which are necessary for keeping the organization running in general,and for the support activities in particular?
A) Maintenance, repair and operating materials.
B) Supplies
C) Consumables
D) Tangible goods
Answer: A
Q2) Which of the following explains global sourcing?
A) Products are increasingly sourced from foreign, low-cost countries.
B) Products which are purchased to be sold locally.
C) Products that are sold outside of the European Community.
D) Products sourced from local suppliers.
Answer: A
Q3) Which of the following are 'primary activities'?
A) Human Resources Management
B) Inbound logistics.
C) Public relations
D) Payroll
Answer: B
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Chapter 2: Industrial Buying Behavior: Decision-Making in Purchasing
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58 Flashcards
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Sample Questions
Q1) Which of the following is an example of 'New-task situation'?
A) Situation when the organization decides to buy a completely new product, supplied by an unknown supplier.
B) Relates to a situation when the organization wants to purchase a new product from a known supplier.
C) Relates to a situation when the organization wants to purchase an existing product from a new supplier.
D) Relates to a situation when the organization wants to purchase an existing product from a unknown supplier.
Answer: A
Q2) Which of the following best explains a situation where a contractor agrees to work based on a fixed sum?
A) Fixed sum contract.
B) Fixed price contract.
C) Contractor commitment.
D) Fixed profit contract.
Answer: B
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4
Chapter 3: The Purchasing Management Process
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60 Flashcards
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Sample Questions
Q1) Which of the following dimensions can be used to measure and evaluate purchasing activities?
A) Floor area of facility.
B) Reputation.
C) Complaints.
D) Logistics.
Answer: D
Q2) Which of the following is not a focus in the purchasing and supply model?
A) Reduce cost.
B) Total customer satisfaction.
C) Contract management.
D) Supply chain optimization.
Answer: C
Q3) Which of the following is not part of the purchasing management process?
A) Purchasing (market) research.
B) Purchasing objectives.
C) Purchasing strategy.
D) Purchasing structures.
Answer: D
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Page 5
Chapter 4: Buying Business Services
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61 Flashcards
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Sample Questions
Q1) Which of the following processes is used to professionalize purchasing for purchasing excellence?
A) Strategic management processes.
B) Operational management processes.
C) Tactical management processes
D) Risk assessments.
Q2) What of the following may best describe the key driver for buyers?
A) Buyers should be professional.
B) Buyers should be assertive negotiators.
C) Buyers should be objective.
D) Buyers should be 'cost-driven'.
Q3) Which of the following do not feature in a 'triad' configuration in services delivery?
A) Suppliers.
B) Buyers.
C) Customers.
D) The Government.
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Chapter 5: Contract Management for Complex Projects
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Sample Questions
Q1) Which of the following best explains 'design-build-finance-maintain (DBFM) contract'?
A) Contractor designs and provides in accordance with the client's requirements, plant and/or other works.
B) Contractor constructs the project in accordance with the design provided by the client.
C) Contractor delivers project or work turnkey.
D) Contractor completes work at own risk and gets paid long-term payments after delivery.
Q2) Which of the following is not a requirement of complex construction projects?
A) Professional contract management.
B) Multiple decision-takers.
C) Professional procurement.
D) Professional project management.
Q3) Which of the following best explains 'back-to-back agreements'?
A) Key subcontractor contracts reflect all conditions of the main contract.
B) Key subcontractor secures rolling contract from purchaser.
C) Key subcontractor is awarded two contracts to run consecutively.
D) Key subcontractor is awarded two contracts to run concurrently.
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Page 7
Chapter 6: Public Procurement
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63 Flashcards
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Sample Questions
Q1) Which of the following best explains 'suitability criteria'?
A) Criteria relating to economic standing.
B) Criteria relating to financial standing.
C) Criteria relating to financial and economic standing and professional ability.
D) Criteria relating to financial and economic standing.
Q2) Which of the following is a European Directives public procurement procedure?
A) Open procedure.
B) Termination procedure.
C) Selection procedure.
D) Closed procedure.
Q3) Which of the following countries are not full members of the European Union (EU)?
A) Malta.
B) Canada.
C) Slovenia.
D) Ireland.
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8
Chapter 7: Purchasing and Business Strategy
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62 Flashcards
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Sample Questions
Q1) Which of the following is a characteristic of 'performance-based partnership'?
A) Thorough selection of supplier.
B) A joint venture.
C) Customers rate your performance.
D) Suppliers and distributors working together.
Q2) Which of the following are characteristics of 'routine products'?
A) They have a small value per item and there is only one supplier.
B) They have a high value per item and there are many suppliers.
C) They have a high value per item and there is only one supplier.
D) They have a small value per item and there are many suppliers.
Q3) Which of the following is not a quadrant in the Market Growth-Market Share Matrix?
A) Dogs.
B) Stars.
C) Cash cows.
D) Angry tigers.
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9
Chapter 8: Outsourcing and Risk Management
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Sample Questions
Q1) Which of the following describes the action that should be taken in relation to core competences?
A) Core competences should be passes on to suppliers.
B) Core competences should be shared with competitors.
C) Core competences should be closely protected and are not to be outsourced.
D) Core competence should be outsourced.
Q2) Which of the following should be a feature of an Outsourcing Service Level Agreement (SLA)?
A) It should never be updated.
B) It should reflect the overall business goals.
C) It should allow for the supplier to make changes to the SLA.
D) It should not contain details on actions if service levels are not achieved.
Q3) Which of the following best explains a 'performance risk'?
A) The potential for machinery to breakdown.
B) The extent to which the supplier has a history of success.
C) The chance that the supplier is not capable of doing the job it was hired for.
D) The extent to which the provider is trustworthy.
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10
Chapter 9: Category Sourcing: Developing Effective
Sourcing
Strategies
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Sample Questions
Q1) Which of the following is not a potential consequence of category sourcing?
A) Material cost savings.
B) Increased profits.
C) Reduction of working capital.
D) Reduction of transaction costs.
Q2) Which of the following best explains 'category sourcing plan'?
A) This identifies the quality strategy for a certain category.
B) This identifies the sourcing strategy for suppliers.
C) This identifies the pricing strategy for a certain category.
D) This identifies the sourcing strategy for a certain category.
Q3) Which of the following is a criterion in a category prioritization matrix?
A) Cost savings potential.
B) Scope of last tender.
C) Current profit levels.
D) Ease of implementation.
Q4) Which of the following is not an item of IT infrastructure expenditure?
A) White paper.
B) Printers.
C) Mobile telecom services.
D) PCs.
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Chapter 10: Purchasing Innovation and Quality Management
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Sample Questions
Q1) Which of the following terms is not a potential benefit of early supplier involvement?
A) Shorter development lead times.
B) Increased profits.
C) Higher product quality.
D) Shorter time to market.
Q2) Which of the following is a criterion for developing a 'supplier involvement portfolio'?
A) Market share.
B) The period of time collaboration has existed.
C) Trust in the supplier.
D) The degree of responsibility for product development that is contracted out to the supplier.
Q3) Which of the following terms is not a potential short-term advantage of early supplier involvement?
A) Higher profit margins.
B) Better product quality.
C) Lower product costs.
D) Shorter development time.
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Page 12
Chapter 11: Purchasing Logistics and Supply Chain Management
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60 Flashcards
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Sample Questions
Q1) Which of the following is not a characteristic of 'Materials Requirements Planning (MRP-I)'?
A) Releasing manufacturing orders.
B) Releasing purchasing requisitions.
C) Managing manufacturing orders and purchasing requisitions.
D) Controls relevant materials flows and production capacity.
Q2) Which of the following is not a variable used in 'Camp's formula'?
A) Fixed usage per period.
B) Order quantity.
C) Costs per order.
D) Delivery time.
Q3) What is the driver for all activities downstream from the order penetration point?
A) Customer orders.
B) Forecast-based.
C) Internal audit.
D) Quality control.
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Chapter 12: Purchasing Organization
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Sample Questions
Q1) Which of the following best explains the concept of 'hybrid structure'?
A) A combination of the centralized and decentralized structure.
B) A matrix structure.
C) A centralized structure.
D) A decentralized structure.
Q2) Which of the following best explains 'centralized purchasing structure'?
A) All managers can make purchasing decisions.
B) There is a central purchasing department where corporate contracting specialists operate at the tactical level.
C) There is a central purchasing department where corporate contracting specialists operate at the strategic level.
D) There is a central purchasing department where corporate contracting specialists operate at the strategic and tactical level.
Q3) Which of the following is not a skill required of a category sourcing manager?
A) Leadership skills.
B) Business skills.
C) Communication skills.
D) Long-term planning horizon.
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14
Chapter 13: Performance Measurement and Governance in Purchasing
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Sample Questions
Q1) Which of the following is a reason for evaluating purchasing performance regularly?
A) To rate the individual buyer.
B) To lower material prices.
C) Fewer rejects of incoming goods.
D) Better sourcing decisions.
Q2) Which of the following best explains 'price/cost control'?
A) The continuous monitoring and evaluation of process and price increases as they are charged by suppliers.
B) The continuous monitoring and evaluation of activities initiated to reduce costs.
C) The continuous monitoring of quality of supplied orders.
D) The continuous monitoring of suppliers.
Q3) Which of the following best explains 'purchasing's operational contribution'?
A) This is flawless purchasing and business processes that are operated at the lowest possible cost.
B) This refers to the relationship between planned and actual costs.
C) The savings made against budget allocation.
D) The longer term consequences of the activity.
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Page 15
Chapter 14: Cost Approaches and Techniques
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Sample Questions
Q1) Which of the following is not an activity associated with turning supplier rivalry into opportunity?
A) Source each component from two or three vendors.
B) Go to see how suppliers work.
C) Create compatible production philosophies and systems.
D) Set up joint ventures with existing suppliers to transfer knowledge and maintain control.
Q2) Which of the following is not an activity associated with developing suppliers' technical capabilities?
A) Develop a common lexicon.
B) Hone core suppliers' innovation capabilities.
C) Build suppliers' problem-solving skills.
D) Get senior managers involved in solving problems.
Q3) Which of the following is not an action to take supplier performance to a higher level?
A) Supplier suggestion programme.
B) Supplier social event.
C) Supplier development.
D) Supplier satisfaction survey.
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Page 16
Chapter 15: Purchasing, Corporate Social Responsibility and Integrity
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Sample Questions
Q1) Which of the following is not a programme and method to drive sustainability in supply chain management in relation to 'stakeholder management'?
A) Corporate social responsibility committee.
B) Stakeholder meetings on environmental stewardship.
C) Supplier quality assurance programmes.
D) Stakeholder meetings on creating shared value.
Q2) Which of the following is not a programme and method to drive sustainability in supply chain management in relation to 'supply chain sustainability strategy'?
A) Product recovery programmes.
B) Support local buying in countries where sales are made.
C) Secure long-term raw materials supply.
D) Stakeholder meetings on creating shared value.
Q3) Which of the following is not a programme and method to drive sustainability in supply chain management in relation to 'external standards'?
A) Global reporting initiative.
B) Dow Jones sustainability Index.
C) Supplier development programmes.
D) ISO 20400.
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