Online Access Free A10 Practice Test

A joint performance measurement system should benefit both buyer and supplier. Which of the following is a benefit to the buying organisation?

• A.It automatically leads to reduction in overall costs
• B.It allows for products to be purchased 'off the shelf '
• C.It enables unnecessary costs to be designed out of the system
• D.It improves both buyer and supplier production process

Which of the following best defines the term 'consignment stock'?

• A.Stock delivered to the buyer's warehouse at lower than market price.
• B.Stock delivered to the buyer's warehouse that incurs extra cost to the buyer
• C.Stock delivered to the buyer's warehouse but not actually issued for use until the buyer has paid for it
• D.Stock delivered to the buyer's warehouse but not actually paid for until the buyer issues it for use

Which of the following recognises the purchasing function adding value to an organisation?

• A.The buyer placing more orders in bulk
• B.The buyer sourcing a lower cost suitable product
• C.The buyers placing more orders
• D.The department having meetings with more suppliers

Which of the following is the most often quoted benefit of joint performance measurement and relationship building techniques?

• A.Supplier base enlargement
• B.More varied problems
• C.More professional development
• D.More understanding of the supply chain

Which of the following is essential for an effective appraisal process?

• A.Clearly defined rules and regulations for the post
• B.Clearly defined objectives for each post
• C.Clearly defined salary levels for each post
• D.Clearly defined demarcation lines between levels