Q136. Raja is a procurement manager who is keen to gain further insight into the current marketplace and whether local suppliers are capable to provide a service he is looking to procure. He wishes to test the market before he begins a formal tender process. What should Raja do?

Q137. When conducting an ABC analysis- what category of items and type of suppliers would you typically find in the A category?

Q138. One approach to managing supply risk is having multiple suppliers for a product. Which condition justifies multiple sourcing?

Q139. Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?

Q140. Who was responsible for introducing the concept of Incoterms?

Q141. The procurement manager has received the following data from the supplier’s accounts to facilitate the calculation of the supplier’s current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?

Q142. Which of the following would you expect to find in an Invitation to Tender? Select THREE

Q143. What might a buyer encounter if the supplier’s government has introduced a protectionist measure?

Q144. A buyer is procuring metals. The following trends are observed:
* January and April: supplier’s local currency is strong
* November: demand is lowest
* May: demand is highest
Which month should the buyer place the order?

Q145. The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

Q146. Amnesty International, Oxfam and CIPS are examples of what type of organisation?

Q147. Which of the following would be considered a strategic sourcing activity?

Q148. A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. Which of the following factors is likely to justify the decision to make the requirements internally?

Q149. Robert is appraising suppliers and is keen to evaluate suppliers’ contribution to the community and the environment. Which of the following should Robert look at?

Q150. What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

Q151. Which of the following is a measure of liquidity?

Q152. When assessing social responsibility elements of a supplier’s proposal, what type of supporting evidence could a supplier provide?

Q153. A prequalification questionnaire can allow a buyer to determine whether or not a potential supplier shares the same ethical values at an early stage of a procurement process. Obtaining confirmation that a supplier has not previously been convicted of breaches of modern slavery legislation belongs to which form of evaluation criteria?

Q154. For what type of purchase would you use a Futures Exchange?

Q155. Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.

Q156. In which instance would multiple sourcing be the most applicable approach?

Q157. When sourcing an item of strategic importance and high value in the public sector, is it important to advertise this publicly?

Q158. Jamilla is looking to find a new supplier who can deliver raw materials of wood and paper to her company Woody Manufacturing Incorporated. The requirement is for regular orders of high volume. She has issued a Request for Quotation. What will this assess the suppliers on?

Q159. Incoterms are designed to be understood and interpreted on a worldwide basis. What is the interpretation for FOB (Free on Board)?

Q160. Ramesh is an IT category manager within the UK’s National Health Service and is responsible for the procurement of a new high-value network system, which will be used across multiple doctors’practices and community health centres. Ramesh has reviewed the different tender approaches and has concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?