Online Access Free L4M2 Exam Questions

Which of the following activities would apply to a straight rebuy procurement?
Reviewing existing specifications and arrangements
Engaging in extensive purchasing research
Engaging in proactive value engineering
Optimising inventory replenishment methods

• A.1 and 3 only
• B.1 and 4 only
• C.2 and 4 only
• D.2 and 3 only

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.1 and 3 only
• B.1 and 4 only
• C.2 and 4 only
• D.2 and 3 only

SET Group are a start-up company trying to estimate the direct costs of materials for a project. The organisation has limited procurement records available. Would using general industry averages as a benchmark provide an accurate estimation of the project costs?

• A.No, the organisation will not have access to industry benchmarks as they are a new organisation
• B.No, industry benchmarks do not consider specific specifications, quality requirements, or real-time market conditions
• C.Yes, cost predictions do not need to be accurate as they are just an initial guess
• D.Yes, industry benchmarks are always kept up to date to consider real-time market conditions

Simon has received a requisition for a product identical to one already purchased, but this time the product requires specific customer-branded packaging. What type of purchase is this?

• A.Straight re-buy
• B.New buy
• C.Unmodified re-buy
• D.Modified re-buy

You are a senior buyer in a large manufacturing company. The engineering team is looking for a product that will assist them in a new innovative project. The technology is evolving and the product supplied is likely to be bespoke to the supplier. You are suggesting the use of a performance specification as a part of the tender. What is the main reason for this?

• A.The cost of the product is likely to be cheaper
• B.This places the responsibility for success with the supplier
• C.The tender process is likely to be faster
• D.This will allow a comprehensive description of the product