Question 1

Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?

Options :

A : Yes, decommissioning and disposal costs will not be accounted in this approach

B : Yes, this approach will lower the total cost of ownership

C : No, a ship is used only once, through-life management is unnecessary

D : No, the company just needs to select the lowest bidder

Answer: B

Question 2

Which of the following are recognised competitive strategies?

1. Winning new business at all cost

2. Getting more customers’ attention

3. Creating stand-out products and brands

4. Focusing on niche market

5. Acquiring competitors

Options :

A : 3 and 5 only

B : 2 and 5 only

C : 3 and 4 only

D : 1 and 2 only

Answer: C

Question 3

Which of the following are most likely to negatively affect the suppliers’ bargaining power in a specific market? Select TWO that apply:

Options :

A : There are almost no threats of backward integration

B : Buyers incur high cost when they change their suppliers

C : There are no differences among suppliers' products

D : Many suppliers are intent on integrating buyers into their business

E : Substitute products are readily available in the market

Answer: C,E

Question 4

When procuring a machinery, at which stage buyer must check whether that machinery is working to the standards set out in the design specification?

Options :

A : Customer support

B : Maintenance and repair activities

C : Manufacture

D : Installation

Answer: D

Question 5

Which of the following specific markets is most likely to require enormous investment in machineries and access to skilled workforce?

Options :

A : Agriculture

B : Construction

C : Retail

D : Manufacturing

E : Finance

Answer: D

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