Online Access Free L4M4 Exam Questions

Ramesh is an IT category manager within the UK's NHS and is responsible for the procurement of a new high-value network system. Ramesh 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?

• A.It is only relevant when there are few suppliers in the market
• B.Suppliers responding to the tender are pre-qualified
• C.Direct negotiations occur prior to suppliers submitting their offer
• D.The contract will be awarded strictly on pricing criteria

A buyer of bakery products sees wheat shortages due to poor harvests but demand remains high. How does this affect negotiation?

• A.Buyer is in a strong position to reduce prices
• B.Buyer will find it difficult to negotiate lower prices
• C.Bakery produce will be lower priced as less wheat is available
• D.Prices will not be affected by shortages as demand is high

A procurement manager has developed some reports in order to analyse total company expenditure on bought- in goods and services from external suppliers. Expenditure information by product category or supplier can achieve which of the following? Select TWO that apply.

• A.Help the organisation set its marketing strategy
• B.Highlight opportunities for negotiating better prices and reducing costs with suppliers
• C.Provide information on costs and trends to compare with previous time periods
• D.Identify how obsolete stock items can be disposed of in a sustainable way
• E.Provide analysis to help with planning production schedules

When would a procurement professional use the Pareto principle?

• A.when conducting a value analysis
• B.when looking at whole-life-cycle costs
• C.when considering changing a supplier
• D.when appraising a supplier

Which instance would multiple sourcing be the most applicable approach?

• A.Sourcing for components required at short notice
• B.Sourcing for the provision of a service, where close relationship management is required
• C.Sourcing a specialised, unique component where the supplier's knowledge is key
• D.Sourcing for high-cost, strategically important components