Online Access Free L4M6 Practice Test

George is running a competition to find a supplier to install solar panels on the roof of his factory. The energy this produces will power some of the machines. Cost is an important factor, but there are also other considerations that are important such as how long the solar panels will last, and the maintenance costs if they ever break. What should George do?

• A.Run a separate tender for a company who can provide reactive maintenance to the solar panels
• B.Only invite suppliers he knows will be able to provide good quality products which won't break
• C.Evaluate the bids on price only as this is an important factor
• D.Use a weighted award criteria

The Kraljic Model is most useful for which aspect of procurement?

• A.cost reduction
• B.risk management
• C.cost analysis
• D.category management

A company purchases products from a supplier that falls into the 'strategic' segment of the supply positioning grid. They are drawing up a formal partnership agreement with the supplier. The supplier views the company as core to their business. What would be an important clause to include in the agreement to help make sure the partnership worked in a fully collaborative way?

• A.Force majeure
• B.Time of the essence
• C.Liquidated damages
• D.Continuous improvement

Which of the following characteristics are typical of a partnership approach relationship between a buyer and supplier?
* Win:Lose (distributive) style negotiations
* Joint key performance indicator (KPI) measurement
* Definitive contract end period
* Transparent information sharing

• A.2 and 3 only
• B.1 and 4 only
• C.2 and 4 only
• D.1 and 2 only

Which of the following are considered 'wastes' which can be removed from a business? Select THREE.

• A.Over-processing
• B.Stockout
• C.Inventory
• D.Equity
• E.Transportation