Question 1

A supply manager Is conducting negotiations with a supplier. The supplier states that it cannot offer a lower price because the product under negotiation is covered by a government contract. In this situation, the supply manager should

Options :

A : offer to reduce the order quantity

B : negotiate the other terms and conditions, and return to the issue of price at a later time

C : conclude that this is in fact the best price that the supplier can legally offer

D : require the supplier to provide specifics on the government contract restrictions

Answer: D

Question 2

At what point in the development of a category strategy should spend review occur?

Options :

A : After key internal stakeholders agree on sourcing priorities

B : After development of the sourcing team

C : After presentation of the strategy to senior management

D : During validation of the savings or contribution

Answer: D

Question 3

A service provider has experienced diminished value and stagnant results within an important category. Which of the following is the BEST course of action the firm can take to improve the category strategy?

Options :

A : Open existing contracts and retender them

B : Network with suppliers and launch RFIs to look at alternative solutions

C : Conduct category rotation to bring a different viewpoint to the management of the category

D : Conduct an in-house survey with key stakeholders

Answer: C

Question 4

The chief procurement officer (CPO) for a large hospital system is planning to implement a new e-sourcing system. Satellite clinics and specialty centers will be authorized to process small orders through this system, rather than sending requests to the central supply management department, as has been done in the past. Which of the following actions by the CPO will MOST likely support a successful implementation of this system?

Options :

A : Providing regular progress reports to top management

B : Visiting similar organizations to see how their systems operate

C : Building a team of potential users to help define needs

D : Scheduling on-site demonstrations of leading software systems

Answer: C

Question 5

Which of the following is the MOST important reason for supply management to share company business plans with current and prospective suppliers?

Options :

A : To set the stage for supplier concessions and discounts

B : To remind suppliers how important supply management is to their success

C : To show suppliers the benefits of investing time and resources into the relationship

D : To prevent any problems or misunderstandings in the buyer/supplier relationship

Answer: C

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