Question 1

Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's supplies. After analysing, Bob realises that a group of low value products is sourced from a tiny geographical area which is prone to flooding. What would be the best strategy to manage this category of products?

Options :

A : Find an alternative source to secure supply

B : Source this group of products from only one supplier

C : Form partnership relationship with the current supplier

D : Assign some of procurement jobs to user department

Answer: A

Question 2

Product development consists of various stages, including planning and analysis, design development, pre-production, production and maintenance. At which stages the opportunities for cost reduction will be the greatest?

1. Planning stage

2. Pre-design stage

3. Detail design stage

4. Production stage

5. Logistics support stage

Options :

A :

1 and 4 only

B : 2 and 5 only

C : 1 and 2 only

D : 2 and 3 only

Answer: C

Question 3

Datong is a defence and law enforcement equipment supplier. They are developing new product but largely concerns about the detailed specifications of components and the capability of supply market. Which of the following approach should Datong adopt in order to optimise the specification and shorten time to market?

Options :

A : Request for quotation from potential suppliers

B : Invite the supplier to tendering process

C : Early supplier involvement

D : Control the budget tightly

Answer: C

Question 4

A food manufacturer wants to predict the pricing point for a new and innovative health drink. Which method of market research would be beneficial to receive the most accurate information?

Options :

A : Focus groups

B : Consumer data

C : Sales trends

D : Internet searches

Answer: B

Question 5

Which kind of these following costs belong to the direct costs? Select TWO options

Options :

A : The materials and supplies needed for the company’s day-to-day operations.

B : An employee is hired to work on a project, either exclusively or for an assigned number of hours

C : Advertising and marketing communication

D : Clerical assistants who maintain the office

E : Raw materials

Answer: B,E

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