Online Access Free CORe Practice Test

The types of suppliers MOST suited for regular business reviews are those providing

• A.strategic and leveraged item
• B.leveraged and non-critical items
• C.bottleneck and non-critical items
• D.bottleneck and strategic items

A company that makes specialized equipment for a very competitive industry relies on several critical engineered imported components. The components present a high degree of risk that could impact the future growth of the company. Given this situation, which of the following is the BEST course of action for the buying organization to take when preparing for negotiations with suppliers?

• A.Change sources of any components or raw materials that are imported from high-risk countries
• B.Require suppliers to provide risk insurance, with the buying organization listed as contingency beneficiary
• C.Ask suppliers to analyze potential sources of risk for all components and raw materials
• D.Determine with senior management and internal stakeholders the acceptable levels of risk for each product

Which of the following BEST describes a cash flow budget?

• A.A budget that shows individual expenses without tying the expenses to broader goals
• B.A process in which managers must begin each budgetary period with no predetermined allocations
• C.A budget that links expenditures to revenue within each budgetary period
• D.A financial plan specifying the amount of money to be spent on plant and equipment

MNO, Inc. purchases benchmarking data services from Supplier X, which is the sole source for data relevant to MNO's industry. In recent months, Supplier X's pricing has increased and its technical support has worsened. MNO's supply manager is preparing to negotiate for contract renewal with Supplier X and needs to resolve these concerns. Which of the following is the BEST course action for the supply manager to take before conducting negotiations?

• A.Revise the Service Level Agreement (SLA) with Supplier X, with penalties for non-performance
• B.Develop win-win scenarios to add long-term value in a collaborative relationship
• C.Compare Supplier X's rates against similar services to establish reasonable costs
• D.Determine whether data can be collected from other sources, to bring the services in-house

A supply manager ensures that each stage of the negotiation process is documented, beginning with the preparations for the negotiation. What is the PRIMARY purpose of maintaining such information?

• A.To clarify specifications and performance expectations
• B.To provide justification for any concessions made
• C.To identify weaknesses in the supplier's position
• D.To ensure team members have accurate data