Procurement and supply stakeholders

Q1 : Which of the following is a correct definition of ‘stakeholders in procurement and supply’?

(a) Short term and long term suppliers together with any suppliers that they may have
(b) Individuals, groups or organisations affected by the purchasing decisions made
(c) Shareholders and all parts of an organisation that contribute to or benefit from a purchase
(d) The whole supply chain for a product, including suppliers and customers.

Q2 : Which of the following internal customer groups is involved when high value capital equipment is required?
 
(a) Production, marketing, sales
(b) Administration, managing director
(c) Local community, finance, marketing
(d) Finance, production, senior management, design and engineering.

Q3 : Which of the following types of relationship requires the lowest supplier commitment?

(a) Transactional relationships
(b) Partnership relationships
(c) Tender-based relationships
(d) Strategic relationships.

Q4 : Which of the following is a conflict handling style described as ‘the use of bargaining with each party trading concessions and gains’?

(a) Determining
(b) Accommodating
(c) Synchronising
(d) Compromising.

Q5 : Which of the following is a description of the ‘quality control’ approach to managing supply quality?

(a) Reliance on a business philosophy of continuous improvement
(b) Reliance on prevention of defects from occurring
(c) Reliance on inspection of materials and goods
(d) Reliance on writing specifications which meet international standards.

Q6 : Which of the following is used as part of ‘statistical process control’?

(a) Total quality management
(b) Control charts
(c) Force field analysis
(d) ISO14001.

Q7 : Which of the following activities would result in a ‘conflict of interest’?

(a) Asking a new supplier to quote for business rather than the supplier which has been used for ten years
(b) Giving a contract to a business which has a family connection to the purchaser
(c) Paying a higher monthly payment for a bank loan because of changes in the local bank rate
(d) Arguing with a supplier because the product does not meet the specification provided with the order.

Q8 : Which of the following is a principle of ethical standards?
(a) Supplier quotes will be available for all bidders to see
(b) Suppliers will always pay for hospitality
(c) Purchasers will always give suppliers a second chance
(d) Child labour is not to be used by suppliers.

Q9 : Which of the following features in ‘codes for sustainable procurement’?
(a) A commitment to consider the total life-cycle environmental impact of a product
(b) A commitment to reduce the supplier base
(c) A commitment to eliminate tenders for large value contracts
(d) A commitment to provide a full cost breakdown of the retail price to consumers.

Q10 : Which of the following describes the principle of ‘delegated authority for procurement’?

(a) Allowing suppliers to amend the purchase price during a contract period
(b) Allowing suppliers to substitute alternative products to the ones ordered
(c) Allowing a purchaser authority to place orders within stated limits
(d) Allowing a work colleague to cover the purchasing tasks whist the purchaser is on holiday.