Q30. An automotive manufacturer is sourcing rubber components from Company A.
The specification given to the supplier state that the component should be 1 meter long, without mentioning the tolerance. Enthusiast with the opportunity, engineers at Company A work hard to cut the components with tolerance at only +/- 1mm. The head and tail of the component is then joined together to form a circular band. After that it is stretched over another component. To fit this purpose, the rubber component can be at any length from 80cm to 110cm. This is an example of…?

Q31. Which of the following are the fair and reasonable comparators in price analysis? Select TWO that apply:

Q32. A drawing is an example of…?

Q33. Datong is a defence and law enforcement equipment supplier. They are developing new product but largely concerns about the detailed specifications of components and the capability of supply market. Which of the following approach should Datong adopt in order to optimise the specification and shorten time to market?

Q34. Which of the following problems may be identified as open-ended problems? Select TWO that apply:

Q35. What is the output of regression analysis?

Q36. Which of the following specific markets is most likely to have product shortage by nature?

Q37. When a procurement manager considers a substitution, the number and nature of additional func-tions that substitute provides should be taken into account carefully. Which of the following ratio could help the procurement manager to make the right decision?

Q38. Which of the following activities are considered as secondary activities of an organization? Select TWO that apply

Q39. According to Porter’s value chain, which of the following activities is categorised as support activity?

Q40. Which of the following activities are considered as primary activities of an organization according to Porter’s value chain? Select TWO that apply:

Q41. Synergy Ltd is a fast-growing tool and hardware retailer. The company’s customer services team has been using Excel worksheets to manage customer relationships. When the company is expend-ing its market presence, this way of working leads to poorer customer services as the database is scattered around in spreadsheet, leading to patchy and inconsistent conversations with customers. The company decides to purchase a CRM system. What requirement should Synergy’s procurement team take into account in the specification for CRM system?

Q42. Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company’s sup-plies. After analysing, Bob realises that a group of low value products is sourced from a tiny geo-graphical area which is prone to flooding. What would be the best strategy to manage this category of products?

Q43. XYZ Ltd is a large supermarket chain which operates mainly in the UK and Europe. Their custom-ers are increasingly concerned about sustainability. Therefore, procurement manager is required to source the products from suppliers who have good environmental performance. Which of the fol-lowing can be an assurance that the supplier has procedures and policies to enhance its environmental performance?

Q44. Which of the following is a challenge of making a business case for straight re-buys?

Q45. Housing Ltd is inviting a number of contractors to a tender for the construction of a commercial building. In the attachment to the invitation to tender, there is a document which describes the re-quired materials and installation methods. This document is known as…?

Q46. A company is planning the procurement of an IT system and wants to agree a through-life contract with the supplier to ensure ongoing system support. The first step in producing that specification should be to:

Q47. Due to the growth of consumer electronics market, semiconductor industry develops exponentially. However, the industry is dominated by a dozens of manufacturer. Chipset need to be built in factories with highly controlled environments. New chip factories cost billions of dollars and can take two years to build. Right now, factories are running at full capacity, which produce almost perfect yields, meaning basic chipset can be made for less than a dollar and more advanced versions for not much more. What are the barriers to new entrants in the semiconductor industry?
1. Poor industry growth
2. High set-up costs
3. Economies of scale
4. Low switching costs

Q48. Which of the following are most likely to negatively affect the suppliers’ bargaining power in a specific market? Select TWO that apply:

Q49. Which of the following specific markets engage in creation, liquidation and change of ownership of stock?

Q50. To strengthen its market presence, ABC Group decided to develop a new product. A cross-functional team was formed to discuss the scope and the functions of the product. They will also survey the potential customers to see what they like, what they love, and what they dislike. What is this process called?

Q51. Which of the following are likely to be disadvantages of using outcome-based specifications? Select THREE that apply