Ethical and Responsible Sourcing Questions and Answers
When selecting a supplier on technical merit, its important that the supplier is a good 'functional fit' for the organisation. What is meant by 'functional fit'?
For what type of purchase would you use a Futures Exchange?
Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?
Roberto is running a tender in which his main concern is price. However he is keen to hear also about the companies' Corporate Social Responsibility Policies and how this will impact their delivery. Roberto is considering awarding the CSRquestion4 points in a weighted point system. If he does this, what weight should be given to the price?
A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?
Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies. Will this reduce the risk posed to Khalid?
If a company is described as 'liquid' what does this mean?
Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?
Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?
Sourcing products internationally involves extra considerations when looking at the price of the item. Which of the following are additional price considerations for international sourcing? Select TWO
Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?
Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of their manufacturing operations. Which of the following is a risk of offshoring that Steff should consider.
Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these. Which of the following items would be C category items?
Which of the following is a regulatory body which protects the rights of workers?
Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?
Rules regulating the type of goods and the volume that can be imported into a country or trade block are commonly known as what?
Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally. Which of the following is described by Incoterms? Select THREE.
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE
When would a procurement professional use the Pareto principle?
Commodities can be traded on a stock exchange and are generally divided into one of four categories. Which of the following is not one of these four categories?
When working closely with a supplier, waste can be reduced which can lead to improved business functions and cost savings. Which of the following are wastes that can be removed from the supply chain? Select THREE.
A company has actively included supporting of disadvantaged groups within their ESG commitment. Which of the following groups are considered disadvantaged?
Which of the following incoterms relate specifically to transporting items over water?
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?
Which of the following is not a indices that measures economic data?
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass. What relationship style would be best suited?
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?
Which of the incoterms listed are suitable for transporting goods via train?
Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?
A Request for Quotation asks a supplier to submit a price only, with no other details provided. Is this TRUE?
Bribery is considered an unethical business practice. What constitutes a bribe?
GDP is an economic index that a procurement professional can use to measure economic data. What does GDP tell you?
In the Public Sector, what is the evaluation criteria most often used when evaluating bids fromsuppliers?
Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present. What type of sourcing relationship is a buyer likely to have with this supplier?
