L4M2 Practice Exam Questions and Answers

As the lead procurement manager, you have been asked to compile a business case for a large project. Which of the following should you include in the business case?

Costs and risks

List of large suppliers

Business benefits

Informal recommendation

A procurement manager is writing a conformance specification for a non-core component. She thinks that if the requirements in specification are higher than ISO standards, her company can achieve greater cost-savings. Is the procurement manager’s opinion correct?

A procurement manager is discussing with other stakeholders about the scope and the implementation of the upcoming construction project. A stakeholder argues that the construction projects are often risky as the overall scope of the work can't be accurately estimated from the beginning. Furthermore, the project spans over a long period, the costs of materials can fluctuate widely. The procurement manager suggests that the pricing structure should be able to cover the supplier's costs plus 10% markup on total costs. This arrangement is known as...?

When developing a business case for a new product, a procurement department must consider...

A hospital extensively spends on medical and implantable devices, medical, surgical and pharma-ceutical supplies, costs of supplies related to buildings and maintenance operations. Hospital’s procurement manager suggests that the hospital has an opportunity to reduce operational costs by reducing variation of medical devices and pharmaceutical supplies. Which of the following best describe the procurement manager's suggestion?

Which of the following methods will enable a company to eliminate waste, lost time and lost material from its processes?

What is the purpose of sending value engineering analysis to external suppliers?

Which of the following are typical environmental considerations throughout the contract life cycle? Select the TWO that apply.

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

1. Planning stage

2. Pre-design stage

3. Detail design stage

4. Production stage

5. Logistics support stage

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