BUAD 331 EXAM 2 QUESTIONS AND ANSWERS
2026 PRACTICE TEST WITH SOLUTIONS
◉ The key to effective procurement strategy is ______ of suppliers and
___________ management.
A. Comparison, aligned
B. Segmentation, strategically appropriate
C. Strengthening, customer-focused
D. Disconnection, dishonest. Answer: B. Segmentation, strategically
appropriate
◉ Which of the Krajlic's Portfolio Matrix items is highly complex in
the supply market and has a high importance of purchasing?
A. Leverage Items
B. Strategic Items
C. Mosaic Items
D. Pertinent Items
E. Expendable Items. Answer: B. Strategic Items
◉ How can purchasing add value to an organization?
A. By ensuring an uninterrupted flow of materials or services
B. By reducing the total cost of products
,C. By collaborating with other areas such as logistics on supplier
location decisions.
D. By increasing revenue through supplier innovation and new
product launch
E. All of the above (and MORE) are ways that purchasing can
contribute to organizational success.. Answer: E. All of the above
(and MORE) are ways that purchasing can contribute to
organizational success.
◉ On Kraljic's matrix the quadrant of "bottleneck" is the most
challenging for purchasing managers to deal with? In fact it is
recommended that you think of ways to shift these items to other
quadrants of the matrix. What is one purchasing tactic that might
allow you to do that?
A. Reverse auction
B. Use P-cards and on-line catalogs
C. Set up a long term contract
D. Buying consortium, group together multiple buyers
E. Switch suppliers. Answer: D. Buying consortium, group together
multiple buyers
◉ When are supplier evaluation and selection decisions initiated?
A. In response to requests from internal customers
B. During the design and building of new facilities
, C. During new product development
D. During routine market testing
E. All of the above. Answer: E. All of the above
◉ When thinking about price reductions what can purchasing do to
achieve significant price or cost savings and maintain the
appropriate supplier relationship when buying leverage items?
A. Forward buying
B. Supply base reduction
C. Hard ball negotiations
D. Buy the product from more suppliers
E. All of the above are tactics to achieve price or cost savings.
Answer: B. Supply base reduction
◉ What is the best tactic purchasing can use in order to meet the
material and support needs of its internal customers?
A. Provide an uninterrupted flow of the appropriate quality
materials and services.
B. Buy from suppliers that are geographically close to the location of
internal customers.
C. Find the lowest possible price through low-cost country sourcing.
D. Minimize the number of suppliers in the supplier pool.
2026 PRACTICE TEST WITH SOLUTIONS
◉ The key to effective procurement strategy is ______ of suppliers and
___________ management.
A. Comparison, aligned
B. Segmentation, strategically appropriate
C. Strengthening, customer-focused
D. Disconnection, dishonest. Answer: B. Segmentation, strategically
appropriate
◉ Which of the Krajlic's Portfolio Matrix items is highly complex in
the supply market and has a high importance of purchasing?
A. Leverage Items
B. Strategic Items
C. Mosaic Items
D. Pertinent Items
E. Expendable Items. Answer: B. Strategic Items
◉ How can purchasing add value to an organization?
A. By ensuring an uninterrupted flow of materials or services
B. By reducing the total cost of products
,C. By collaborating with other areas such as logistics on supplier
location decisions.
D. By increasing revenue through supplier innovation and new
product launch
E. All of the above (and MORE) are ways that purchasing can
contribute to organizational success.. Answer: E. All of the above
(and MORE) are ways that purchasing can contribute to
organizational success.
◉ On Kraljic's matrix the quadrant of "bottleneck" is the most
challenging for purchasing managers to deal with? In fact it is
recommended that you think of ways to shift these items to other
quadrants of the matrix. What is one purchasing tactic that might
allow you to do that?
A. Reverse auction
B. Use P-cards and on-line catalogs
C. Set up a long term contract
D. Buying consortium, group together multiple buyers
E. Switch suppliers. Answer: D. Buying consortium, group together
multiple buyers
◉ When are supplier evaluation and selection decisions initiated?
A. In response to requests from internal customers
B. During the design and building of new facilities
, C. During new product development
D. During routine market testing
E. All of the above. Answer: E. All of the above
◉ When thinking about price reductions what can purchasing do to
achieve significant price or cost savings and maintain the
appropriate supplier relationship when buying leverage items?
A. Forward buying
B. Supply base reduction
C. Hard ball negotiations
D. Buy the product from more suppliers
E. All of the above are tactics to achieve price or cost savings.
Answer: B. Supply base reduction
◉ What is the best tactic purchasing can use in order to meet the
material and support needs of its internal customers?
A. Provide an uninterrupted flow of the appropriate quality
materials and services.
B. Buy from suppliers that are geographically close to the location of
internal customers.
C. Find the lowest possible price through low-cost country sourcing.
D. Minimize the number of suppliers in the supplier pool.
