Online Access Free CORe Practice Test

A chief procurement officer (CPO) is asked by the company corporate travel department to present strategies and tactics related to the acquisition of travel services. Which of the following approaches will BEST demonstrate an understanding of the travel department's needs?

• A.Emphasizing the company-wide implementation of a corporate card as a tool to monitor every aspect of the travel spend
• B.Presenting benchmarks on the average costs of domestic and international airline tickets, to employ during negotiations over airline contracts
• C.Highlighting the negotiating of airline contracts, given that air travel represents the largest element of the budget and other travel spend categories are less important and harder to control
• D.Focusing on supply (e.g. airlines, hotels) and demand (e.g. company travel policy, classes of travel), and how supply management can optimize both

A company currently has contracts with several temporary labor suppliers with detailed requirements for the same skill set. The hourly rates charged by each of these suppliers vary widely. The firm wants to have all temporary labor services provided by one supplier at the lowest possible cost. Given this situation, which of the following is the BEST course of action for the firm to take?

• A.Negotiate for lower pricing with one of the suppliers
• B.Conduct a reverse auction with a clear statement of work
• C.Transition the services to direct employees
• D.Issue a request for proposal (RFP) to preselected suppliers

A supply manager concludes that the best source for a critical component is a manufacturer located in an overseas country. The supplier's pricing and reputation are excellent, but it is in an area that Is politically and economically unstable. The supply manager has no experience in this country, but needs to build a relationship with the supplier. Given this situation, which of the following will be MOST helpful in the long-term?

• A.The employment of a trading agent to facilitate transactions
• B.A clause in the contract stating that the buyer's language will serve as the lingua franca
• C.A secure EDI system established with the overseas supplier
• D.The establishment of an international supply management office

A supplier manufactures toys of proprietary design for its customers. Since the company's customers are industry rivals, the supplier has mutual non-disclosure agreements with each of them. One of these customers has developed a new toy and put it out to bid. Before awarding the contract, the customer's procurement team conducts a site visit to the supplier's factory. During the tour, the supplier asks the procurement team to turn off and put away any cell phones that have cameras. Which of the following BEST describes why the supplier made this request?

• A.To protect the production schedules of the other customers
• B.To protect the confidentiality of the manufacturing process
• C.To protect the supplier's employee work practices
• D.To protect the finished goods of other customers

What is the landed cost per unit for the following item?
Item cost$.76
Packaging for shipment$.02
Shipping from Indonesia$.14
Duty$.03
Customs clearance$.10
Storage at buyer's warehouse$.09
Shipment from warehouse to plant$.06

• A.$1.03
• B.$1.20
• C.$1.14
• D.$1.05