Which of the following best describes the relationship between a Statement of Work (SOW) and a Service Level Agreement (SLA)?

A supplier’s profit margin is 20% on cost-plus pricing. If the total cost is $100 and market research suggests customers will pay up to $150, what pricing strategy might be more appropriate?

In a two-envelope tendering system, what is the correct sequence of evaluation?

In the “Battle of the Forms” scenario, what is the “Last Shot Rule”?

In a cost analysis, if indirect variable costs increase by 15% when production increases by 5%, this suggests:

What is the main purpose of Early Supplier Involvement (ESI) in specification setting?

What is the primary purpose of a Statement of Work (SOW)?

Which pricing strategy represents an apparent contradiction in terms of profitability and market penetration?

Supply Chain Management primarily focuses on:

What type of contract is most suitable when technical requirements are clearly defined and costs can be accurately estimated?

Which of the following combinations would create the most complex and challenging Total Cost of Ownership analysis?

Which type of procurement typically includes Maintenance, Repair, and Operating (MRO) supplies?

Which of the following is NOT a basic element of a legally binding contract?

If a company’s contribution margin is $60 per unit and fixed costs are $180,000, what sales volume is needed to generate a profit of $30,000?

A bearing used in assembling a car would be classified as:

What is a contract primarily a statement of?

In a Total Cost of Ownership calculation, which combination represents costs across the complete lifecycle?

What is the primary role of procurement in the internal supply chain?

Which combination of factors would most likely indicate a need for strategic rather than tactical negotiation?

If a supplier uses “market skimming” pricing strategy, in which scenario would this be LEAST effective?

Which of the following is considered a direct procurement item?

Which source of negotiation power comes from attraction based on socially acceptable personal qualities and attributes?

A company has fixed costs of $100,000 and sells products at $500 per unit with a variable cost of $300 per unit. What is their breakeven point in units?

What is the main difference between inbound and outbound logistics?

In electronic negotiations, which of the following is NOT a common challenge?

What is the key difference between public and limited tenders?

In the context of Supply Chain Integration, what is the theoretical ideal level of integration?

Which of the following best describes the relationship between procurement and purchasing?

What are the THREE primary goals levels that negotiators should plan for?

During supplier debriefing for unsuccessful bidders, which of the following should NOT be discussed?

Which of the following is NOT one of the “7 Rights” of procurement objectives?

According to the supplier management cycle, which stage comes first?

Which of the following is NOT a characteristic of positional negotiation?

What is the primary characteristic of a Request for Information (RFI)?

According to the typical proportion of costs shown in the chapter, what percentage of an organization’s costs typically comes from materials, components, and services?

What is supplier management primarily concerned with?

Which of the following is a correct definition of BATNA?

In which situation would direct ordering be most appropriate?

Which combination of contract terms would provide the most balanced risk allocation in a complex technology implementation project?

In a Win-Win negotiation:

What percentage of the estimated cost is typically required for a Bid Bond?

In a Fixed-Price Incentive (FPI) contract with a 50/50 share ratio, if the target cost is $500,000 with a target profit of $50,000 and the final cost is $450,000, what would be the final profit?

What is the primary purpose of negotiation in procurement?

Which of the following is NOT a required component of a Statement of Work (SOW)?

A supplier’s proposal includes modifications to the original offer. Under contract law, which of the following scenarios correctly represents the legal status of this situation?

If a price analysis reveals that competing offers vary by more than 25%, while historic prices show stability, this most likely indicates:

When would Performance Specifications be most appropriate?

What is the key distinction between Liquidated and Unliquidated damages?

When evaluating supplier pricing, which combination of factors creates the highest risk for the buyer?

What is the typical validity period requirement for a Bid Bond?

According to the pareto curve and ABC classification, the “A” rank items representatives.

According to Kraljic portfolio matrix, the items which have a low financial impact on the
organization and have many suppliers providing them, are classified as:

Direct procurement refers to the purchase of any other items which supports the production
or business processes but doesn’t constitute a part of the final product:

In manufacturing companies:

In portfolio analysis, the goal when purchasing bottleneck items is:

In portfolio analysis, the goal when purchasing non-critical or routine spend is to:

In the portfolio matrix, characteristics of goods and services in the bottleneck quadrant are:

Indirect spend is:

Internal business partnerships between procurement and other functional areas such as
marketing/sales, finance/accounting, operations and engineering are

Minimize prices by consortium buying or demand aggregation for bulk discounts and
negotiation leverage:

Procurement objectives are always in balance and can all be achieved in full without any
compromise:

Quality and price are always the most important objectives to achieve in each purchase
transaction.

Quality control in services is:

Supply chain management is:

Supply chain management refers to a systems approach to managing:

The answer to the question, “How much to buy?” depends on:

The inability to store services:

The objectives of procurement management focus on:

Procurement has an important role in.

Purchasing is a wider term and more strategic focus than procurement.

There is a direct positive relationship between the impact of procurement on the
organizational profitability and the amount of spend under procurement control:

Whole Life value of money and the payback period of the investment, is considered a business
need for which type of the following purchasing categories:

….. .. is the purchases made by an organization to ensure the efficient day-to-day running of
the business.

A Freight Forwarder is considered under which of the following classification of logistics
service providers:

For manufactured goods, it is recommended to use the following Institute cargo clause:

Four companies offer an importer (buyer) identical goods at the same price but with different
delivery terms. Which of these rules are best for the Buyer?

In documentary collection payment, the bank guarantees that the buyer will pay and collect
the documents:

In Letter of Credit payment, the banks inspect the documents to check their compliance with
the LC conditions regardless the terms specified in the sale of goods contract between Seller
and Buyer:

Inspection visits to qualify suppliers are only possible for local suppliers:

One of the advantages of the global sourcing is,

One of the drawbacks of local sourcing is,

The import customs duty is determined according to the following:

The INCOTERMS dules do not deal with:

The INCOTERMS rules can be considered as a contract of sale between Seller and Buyer :

The Institute Carpo Clauses (A) are the most comprehensive coverage while clauses (C) are
regarded as minimum risk coverage.

The sellers and buyers have different interests in payment arrangement:

Under CIF Incoterms 2020, only one of these statements is true, which one:

Which Incoterms 2020 rule requires the buyer to bear all costs and assume all risks once the
goods have been made available to the buyer not yet loaded on the collecting vehicle in the
seller’s premises?

Which of the following Incoterms 2020 rules includes the seller retaining responsibility for
the goods whilst they are ready for unloading at their destination?

Which of the following payment terms is the safest for the Buyer:

Which of these Incoterms8 2020 rules includes the seller paying for carriage to a named port
of destination?

A request for quotation that asks for a “brand or equal.’’

Core competencies of an organization are typically:

Direct ordering may be utilized in the following situation/s:

If the buyer has a clear and unambiguous description or specification and wants to find out
which supplier can deliver the best value when and where needed, he or she will typically
issue a:

It is always more recommended to use Performance Specifications over Conformance
Specifications

Limited Tender must be advertised in newspapers, to let all interested bidders know that such
tender is floated.

Make or buy and insourcing or outsourcing decisions are:

One of the advantages of outsourcing is:

One of the Conformance Specification examples is: