ADMIN

Q1
Which of the following explains why an order acknowledgement is requested when purchase
orders are issued?

A. To ensure the requisitioner is updated by the budget holder.

B. To obtain confirmation that the order has been accepted
C. To allow the invoice to be checked
D. To authorize the purchase and ensure budgets are monitored

Q2
which of the following is best practice when damaged or poor quality goods are identified at
inspection stage?

A. Cancel the contract and return all items until the problem is corrected.
B. Scrap the items, deducting the additional costs from any payment due.
C. Isolate the parts affected, contact the supplier to agree how to resolve the problem.
D. Deduct the amount involved from the supplies invoice when it is presented.

Q3
Which of the following is defined as “the right to exercise power in a particular context"?

A. Responsibility
B. Accountability
C. Authority
D. Expediting

Q4
At which of the following stages is it "best practice" to first issue detailed specifications to a
supplier in à tender process?

A. When sending the invitation to tender documents.

B. When placing the order with the successful bidder
C. When required by a supplier that is bidding
D. At request of the existing supplier, prior to advertising a tender.
Q5
The bid management and decision regarding the winner of a tender should ideally be undertaken
by one staff member. The statement is....

A. False, because a single staff member should not have total control over the tender.
B. True, because there is no need to involve anyone else in the decision
C. True, because only one staff member is able to understand the bids
D. False because different staff members will want to ensure they can change the result.

Q6

Which of the following is best practice to ensure that new supplier invoices presented are
complete?

A. Issue an information pack to all suppliers with details required

B. Ignore an invoice which does not comply with company procedures
C. Deduct an administration charge for information missed
D. Delay payment until the following month.

Q7
Which of the following is the purpose of an authorization hierarchy within a purchasing
department?

A. To match invoice to good received notes

B. To enter details of invoices received on a computer system
C. To deal with feedback from requisitioners following receipt of goods
D. To add rigour to the purchase process and reduce the risk of fraud

Q8

There are two main types of addendum to contract as stated below.

(a) appendix/ annexes’

(b) performance schedule/conformance
(c) contract specification/conformance
(d) contract schedule/exhibits

Q9

Which of the following will help an organisation to more accurately predict its future requirements?
A supplier selection
B vendor rating
C stakeholder analysis
D market knowledge
Q10

5.what is 'kanban'
a. a quality improvement method
b. signal used in JIT to trigger supplies
c. the elimination of waste
d. vendor managed inventory
Q11
which of the following is a distinctive feature of the retail supply chain?
a. the supply base is usually based outside Europe
b. The need for just in time supplies
c. the close relationship between the retailer and its major suppliers
d. the direct relationship between the retailer and final customer

Q12

7. which of the following is classified as direct supplies

a. any item procured direct from the manufacturer
b. and item to be used in production process
c. any item purchased in the retail sector
d. any item of high value

Q13

In the assessment of tenders, which of the following explains the relevance of a supplier having
ISO14001 accreditation?
a. The supplier has a system to identify, control and improve its quality performance
b. The supplier can show commitment to industry social, technical and economic standards
c. the supplier has a system to identify, control and improve its environmental performance
d. The supplier can show full compliance with all regulations for import and export trade

Q14

An organization has some buyers with authority to make purchases of $1000 without requiring higher
level approval. Which of the following statement is correct?
a. The buyer are likely to be more efficient but fully responsible for their decisions
b. The buyers can purchase from suppliers they chose without having to follow purchasing procedures
c. the buyers are more likely to ignore the requisition when making purchase decisions
Q15
Define model form contract
a. A contract which both buyer and seller accept an appropriate to their needs
b. a contract that has been prepared using specialist computer software to ensure uniform appearance
c. a contract produced by a third party providing fairness to buyer and seller
d. a contract that includes specific clauses relating to a product's design and use

Q16

which of the following situations can previously agreed 'call off' contract terms be changed?
a. when the buyer or seller standard contract has changed
b. when the change is agreed by all parties to the contract
c. when one party to the contract has not met agreed obligations
d. when the buyer gets a better offer from another supplier

Q17

Which of the following is a method for reducing the chance of fraud?

a. reducing the level of high value stock items
b. ensuring there is documentation for use out of warehouse
c. increase use of physical stock checks
d. correctly labeling and identifying stock items with a bar code

Q18

Which of the following is the reason for holding safety stock

a. to reduce transport costs
b. to increase service levels
c. to reduce holding stock
d. to increase stock turnover

Q19

Which of the following is a cost of holding excessive inventory?

a. direct ordering costs
b. opportunity costs
c. cost of raising purchase order
d. cost of processing goods received
Q20

Which of the following describe a service level/

a. how quickly orders are dispatched
b. the level of stock required to service production
c. how quickly goods are issued from stock when requested
d how often stock is available when requested

Q21

Which of the following is found in inventory file?

a. indirect materials
b. component required for end product
c. end product requirements
d. order outstanding

Q22

Which of the following describes the opportunity cost of holding large stock?
a. By paying for stock, we lose the use of the cash paid out
b. its the value of excess stock held
c. its the value of the total stock held
d. its the cost associated with holding the stock

Q23

Which of the following is a cost of holding insufficient inventory?

A. cost of deterioration
b. cost of insurance
c. cost of obsolescence
d. cost of lost sales

Q24

Which of the following costs does the EOQ minimize?

a. total cost of inventory management
b. total cost of stock holding
c. total costs of overheads
d. total cost of warehouse operations
Q25

Which of the following methods can be used to forecast independent demand?

a.EOQ
b.MRP II
c. last in first out
d. moving weighted average

Q26

Which of the following represents a cost of capital?

a. amount paid for salaries
b. bank interest
c. amount paid to suppliers for the purchase of stock items
d. amount paid to lease mechanical handling equipment

Q27

Which of the following best describes a visual approach to stock control?

a. ABC analysis
b. last in first out
c. two bin system
d.MRP II

Q28
.Which of the following is one of the details that you could incorporate in a price schedule?
a. Any penalty for late payment
b. arbitration clause
C. delivery location
D. The market price of the item

Q29
which of the following is a type of addendum
A. Variation
B. additional schedule
C. Pricing schedule
D. Contact terms
30

when a supplier accepts the buyer purchase order, which of the following is created
a. legal contact
b. relationship
c. specification
d. order.

31. which of the following is true about contract change?

a. once the contract is in place can never be changed
b. it occurs when there is change of government or new legislation
c. the purchasing organizations is free to make changes when ever it wants
d. it is inevitable on long term contract

32 Which of the following describes demand-led manufacturing

a. a push system
b. a pull system
c. an mrp system
d. batch manufacturing

33

Data of procurement activity is useful for which of the following?

A foresting future expenditure
B identifying new supplier’s
C eliminating supply chain risk
D training staff