Strategic Sourcing Test
Bank
Course Introduction
Strategic Sourcing is a course designed to equip students with the skills and knowledge necessary to effectively manage the procurement of goods and services in a global supply chain. The course covers the principles and practices of sourcing strategy development, supplier evaluation and selection, negotiation tactics, contract management, and risk mitigation. Emphasizing both theoretical frameworks and practical tools, students will learn how to optimize sourcing decisions to support organizational goals such as cost reduction, quality improvement, and innovation. Case studies and real-world examples are used to illustrate the complexities and challenges of sourcing in dynamic business environments.
Recommended Textbook
Purchasing and Supply Chain Management 7th Edition by van Weele
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15 Chapters
909 Verified Questions
909 Flashcards
Source URL: https://quizplus.com/study-set/2118 Page 2
Chapter 1: The Role of Purchasing in the Value Chain
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/42215
Sample Questions
Q1) Which of the following is a characteristic of a finished product?
A) A component for the manufacturing process.
B) Products which are purchased to be sold, after negligible added value.
C) Raw materials for the production process.
D) Purchased for storage.
Answer: B
Q2) Which of the following is a consequence of a 'Request for Tender'?
A) Suppliers submit general information that may help them to qualify for a potential tender.
B) Suppliers are invited to submit a general tender.
C) Suppliers are invited to submit general information that will result in them being awarded a supply contract.
D) Suppliers are invited to submit a detailed bid which meets the requirements as laid down in the request for quotation against the lowest possible price (identical to request for tender).
Answer: D
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3
Chapter 2: Industrial Buying Behavior: Decision-Making in Purchasing
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) Which of the following are not elements of a 'Purchase (order) specification'?
A) Unit price specifications
B) Quality specifications.
C) Target budget
D) Logistics specifications.
Answer: A
Q2) Which of the following best explains a 'Tender'?
A) Situation where a buyer asks for bids from a single supplier.
B) Situation where a buyer asks for expressions of interest from different suppliers.
C) Situation where a buyer asks for expressions of interest from a single supplier.
D) Situation where a buyer asks for bids from different suppliers, creating a level playing field.
Answer: D
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4
Chapter 3: The Purchasing Management Process
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Which of the following best explains 'Residential engineering'?
A) A situation where engineers from the supplier are co-located at the buyer's organization to work on design or manufacturing problems.
B) A situation where engineers from the supplier live on the premises of the buyer organization.
C) A situation where engineers from a consultancy are co-located at the buyer's organization to work on design or manufacturing problems.
D) A situation where accountants from the supplier are co-located at the buyer's organization to work on pricing problems.
Answer: A
Q2) Which of the following techniques can be used to measure purchasing performance?
A) Benchmarking.
B) Suggestion schemes.
C) Teambuilding.
D) Psychometric testing.
Answer: A
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Chapter 4: Buying Business Services
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61 Verified Questions
61 Flashcards
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Sample Questions
Q1) Which of the following characteristics differentiates a good from a service?
A) Intangibility.
B) Price.
C) Colour.
D) Frequency of use.
Q2) Which of the following characteristics differentiates a good from a service?
A) Price.
B) Perishability.
C) Availability.
D) Frequency of use.
Q3) Which of the following is an example of an Information and Communication Technology (ICT) Service?
A) Buildings maintenance.
B) Computer help desk.
C) Risk management.
D) Security.
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Chapter 5: Contract Management for Complex Projects
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/42219
Sample Questions
Q1) In the key elements of the contracting process which element comes before contract negotiation and closure and after basic design and engineering?
A) Sending out the invitation to tender.
B) Project execution.
C) Claims.
D) Testing and delivery.
Q2) Which of the following is a stage of contract management?
A) Research.
B) Contract negotiations.
C) Concept.
D) Independent evaluation.
Q3) Which of the following best explains 'moral hazard'?
A) Risks not subject to systematic assessment.
B) Risks that both contractual parties will primarily pursue their own interest.
C) Risk that one party will pursue their own interest.
D) Risk of a breach of legislation.
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Chapter 6: Public Procurement
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) Which of the following disciplines is involved in public procurement?
A) Psychology.
B) Public administration.
C) Sociology.
D) Chemistry.
Q2) Which of the following best explains 'mandatory exclusion criteria'?
A) Participation in politics.
B) Tenders from non-EU companies.
C) Money laundering.
D) New companies with no financial records.
Q3) Which of the following best explains 'threshold values'?
A) An agreement to establish contractual payments.
B) Minimal contractual terms such as the quantities envisaged.
C) Minimum order quantities for public procurement.
D) Purchasing volumes beyond which public institutions are obliged to follow European legislation when making purchasing decisions.
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8
Chapter 7: Purchasing and Business Strategy
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) Which of the following are enabling processes following the view of Monczka?
A) Establish globally integrated and aligned purchasing and supply chain strategies and plans.
B) The identification of all costs.
C) The identification of premises requirements.
D) The identification of all customers.
Q2) Which of the following best explains 'supplier development and quality management'?
A) Suppliers required to achieve quality accreditation.
B) Suppliers encouraged to diversity.
C) Suppliers challenged to provide new ideas for improvement.
D) Suppliers invited to contribute to strategic planning processes.
Q3) Which of the following is a characteristic of the 'Nuisance segment' of the 'Dutch windmill'?
A) Buyer can easily switch from one supplier to another.
B) Supplier in a dominant position versus its customers.
C) Supplier in weak position needing to compete with other suppliers for orders.
D) Suitable for building long-term relationships.
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Chapter 8: Outsourcing and Risk Management
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61 Verified Questions
61 Flashcards
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Sample Questions
Q1) Who should manage outsourcing processes and projects?
A) Business Managers.
B) Consultants.
C) Procurement managers.
D) Accountants.
Q2) Which of the following is not a supporting factor of an outsourcing relationship?
A) Developing a personal relationship.
B) Professional respect.
C) Commitment to continuous improvement.
D) Trust.
Q3) Which of the following best explains the concept of 'onshoring'?
A) Transferring activities that were previously conducted in-house, to a third party in the same country as the customer organization.
B) Transferring activities that were previously conducted in-house, to a provider in a low-cost country.
C) Transferring activities that were previously externally, to another third party.
D) Transferring activities from one section of the organization to another.
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Chapter 9: Category Sourcing: Developing Effective
Sourcing
Strategies
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) Which of the following would not be an item in the 'Business strategy and business issues' contents of a category sourcing plan?
A) Business goals and issues.
B) Business priorities.
C) Important stakeholders.
D) Innovation.
Q2) Which of the following is a time horizon for a design partner relationship?
A) Order to order.
B) 1 year.
C) 1-3 years.
D) 1-5 years.
Q3) Which of the following explains the abbreviation 'RFI'?
A) Recent financial information.
B) Repairs for inspection.
C) Request for information.
D) Return for Incineration.
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11
Chapter 10: Purchasing Innovation and Quality Management
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62 Flashcards
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Sample Questions
Q1) Which of the following is not a supplier integration strategy?
A) Strategic development.
B) Critical development.
C) Arm's length development.
D) Collaborative development.
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 best explains the concept of 'closed innovation'?
A) To develop new products and process without collaboration.
B) To create close collaboration with competitors.
C) To create close collaboration with suppliers.
D) To create close collaboration with parties that share the company's markets.
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12
Chapter 11: Purchasing Logistics and Supply Chain Management
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Which of the following is a characteristic of 'priority management)'?
A) Customer orders, the sales plan, the planned stocks of finished products, and the purchasing plans are linked together.
B) The resources needed are recorded in a document from which the required composition of manufacturing resources is derived.
C) This is a basis for computing the quantities of materials, semi-manufactured products and components which must be manufactured.
D) Priorities are derived directly from the master production schedule.
Q2) Which of the following is a characteristic of 'Manufacturing Resources Planning (MRP-II)'?
A) Customer orders, the sales plan, the planned stocks of finished products, and the purchasing plans are linked together.
B) The resources needed are recorded in a document from which the required composition of manufacturing resources is derived.
C) This is a basis for computing the quantities of materials, semi-manufactured products and components which must be manufactured.
D) Priorities are derived directly from the master production schedule.
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Page 13
Chapter 12: Purchasing Organization
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Which of the following is not a feature of a 'hybrid purchasing structure'?
A) Voluntary coordination.
B) Lead buyership.
C) There is a central purchasing department where corporate contracting specialists operate at the strategic level.
D) Lead design concept.
Q2) Which of the following are not advantages related to decentralized purchasing?
A) Dispersed purchasing power.
B) Direct responsibility for profit centres.
C) Less bureaucratic purchasing procedures.
D) Direct communication with suppliers.
Q3) Which of the following is a skill required of a chief procurement officer?
A) Leadership skills.
B) Project management skills.
C) Communication skills.
D) Reporting skills.
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14
Chapter 13: Performance Measurement and Governance in Purchasing
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61 Verified Questions
61 Flashcards
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Sample Questions
Q1) In the automotive industry,which of the following percentages represent the yearly cost reductions targeted?
A) 5%.
B) 7%.
C) 8%.
D) 10%.
Q2) Which of the following do not feature in a company-wide purchasing cost reduction programme?
A) Clear savings targets.
B) A distinction between theoretical and actual cost savings.
C) The arrangements for reporting savings to general managers.
D) The purchasing savings budget for each item.
Q3) Which of the following is not a dimension on which measurement and evaluation of purchasing activities can be based?
A) A supplier relationship dimension.
B) A logistics dimension.
C) The right material, in the right quantity, from the right supplier, at the right time, at the right place and at the right place.
D) A product/quality dimension.
Page 15
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Chapter 14: Cost Approaches and Techniques
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59 Verified Questions
59 Flashcards
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Sample Questions
Q1) Which of the following is not a situation in which to use the 'learning effect'?
A) When large amounts of money are involved.
B) When there is insufficient time.
C) When it concerns customized components manufactured by a supplier to the customer's specification.
D) When direct labour costs make up an important part of the cost price of the product to be produced.
Q2) Which of the following is not an internal factor influencing the purchase price?
A) Economic.
B) Logistics.
C) Technical.
D) Organizational.
Q3) Which of the following is not an activity associated with supervising suppliers?
A) Send monthly report cards to core suppliers.
B) Provide immediate and constant feedback.
C) Create compatible production philosophies and systems.
D) Get senior managers involved in solving problems.
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Chapter 15: Purchasing, Corporate Social Responsibility and Integrity
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Which of the following promotes 'trustworthiness'?
A) Contractual relationships.
B) The duration of the relationship.
C) Ethical and consistent organizational behaviour.
D) Training and development.
Q2) Which of the following are not indicators in the Dow Jones Sustainability(DJS) Index and the Global Reporting Initiative (GRI)?
A) Fuel efficiency.
B) Carbon footprint.
C) Waste reduction
D) Profits
Q3) Which of the following are acceptable in relationships between purchasers and suppliers?
A) Giving the 'right of first refusal' to your current supplier.
B) Accepting invitations to a free dinner event.
C) Engaging in a personal friendship with the person who is responsible for ordering or invoicing.
D) Accepting invitations to purchase tickets to a charity dinner.
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