SCMN 2150 UNIT 2 QUIZ EXAM PRACTICE QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE Q&A .
SCMN 2150 Unit 2 Practice Questions (Batch 1 of 4: Questions 1–50)
1. What is the most accurate definition of procurement?
A. Buying goods at the lowest possible unit price.
B. The purchase of merchandise or services at the optimum possible
total cost in the correct amount and quality.
C. Managing the transportation of goods from suppliers.
D. The process of manufacturing goods internally.
Answer: B
Rationale: Procurement is defined as purchasing at the optimum total
cost, focusing on the correct amount and quality, not just the lowest
price .
2. How does strategic sourcing differ from traditional purchasing?
A. Traditional purchasing focuses on total cost of ownership.
B. Strategic sourcing focuses on the lowest possible unit cost.
,C. Traditional purchasing focuses on unit cost, while strategic sourcing
focuses on total value and total cost of ownership.
D. There is no significant difference.
Answer: C
Rationale: Traditional purchasing is about sourcing goods at the lowest
cost per unit, whereas strategic sourcing is about creating the best
possible value and looking at the total cost of ownership .
3. What is the correct sequence of the five-step procurement process?
A. Select supplier -> Identify needs -> Evaluate options -> Release
orders -> Manage performance.
B. Identify needs -> Evaluate supplier options -> Select supplier ->
Release orders and receive products -> Measure and manage
performance.
C. Release orders -> Identify needs -> Select supplier -> Evaluate
options -> Manage performance.
D. Evaluate options -> Release orders -> Identify needs -> Select
supplier -> Manage performance.
Answer: B
Rationale: The procurement process begins with identifying needs and
ends with measuring and managing performance .
,4. What is the goal of supply management?
A. To buy products and services at the right price, from the right source,
at the right specification, in the right quantity, for delivery at the right
time, to the right internal customer.
B. To minimize the number of suppliers used.
C. To ensure all purchases are made domestically.
D. To maximize the total cost of ownership.
Answer: A
Rationale: These are the "six rights" or goals of supply management,
ensuring optimal conditions for every purchase .
5. What is the purpose of a quadrant analysis in procurement?
A. To calculate the exact cost of goods sold.
B. To evaluate products/services based on risk exposure and value.
C. To determine the optimal inventory levels.
D. To assess employee performance.
Answer: B
Rationale: Quadrant analysis evaluates the key attributes of
products/services and suppliers based on risk exposure versus value .
, 6. What is a supplier scorecard used for?
A. To track a supplier's contact information.
B. To monitor performance across multiple metrics over time,
categorize suppliers, and offer more business to top performers.
C. To replace the need for a procurement contract.
D. To perform a one-time evaluation of a supplier.
Answer: B
Rationale: Supplier scorecards are used to monitor performance over
an extended period, categorize suppliers, and reward the best
performers with additional business .
7. Why is it important to evaluate supplier performance?
A. To ensure suppliers meet standards, identify potential problems, and
create visibility into the supply chain.
B. To find reasons to immediately terminate supplier contracts.
C. To increase the administrative workload for procurement staff.
D. To reduce the number of suppliers to a single source.
Answer: A
Rationale: Evaluations ensure standards are met and help identify
potential problems that could impact the business .
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE Q&A .
SCMN 2150 Unit 2 Practice Questions (Batch 1 of 4: Questions 1–50)
1. What is the most accurate definition of procurement?
A. Buying goods at the lowest possible unit price.
B. The purchase of merchandise or services at the optimum possible
total cost in the correct amount and quality.
C. Managing the transportation of goods from suppliers.
D. The process of manufacturing goods internally.
Answer: B
Rationale: Procurement is defined as purchasing at the optimum total
cost, focusing on the correct amount and quality, not just the lowest
price .
2. How does strategic sourcing differ from traditional purchasing?
A. Traditional purchasing focuses on total cost of ownership.
B. Strategic sourcing focuses on the lowest possible unit cost.
,C. Traditional purchasing focuses on unit cost, while strategic sourcing
focuses on total value and total cost of ownership.
D. There is no significant difference.
Answer: C
Rationale: Traditional purchasing is about sourcing goods at the lowest
cost per unit, whereas strategic sourcing is about creating the best
possible value and looking at the total cost of ownership .
3. What is the correct sequence of the five-step procurement process?
A. Select supplier -> Identify needs -> Evaluate options -> Release
orders -> Manage performance.
B. Identify needs -> Evaluate supplier options -> Select supplier ->
Release orders and receive products -> Measure and manage
performance.
C. Release orders -> Identify needs -> Select supplier -> Evaluate
options -> Manage performance.
D. Evaluate options -> Release orders -> Identify needs -> Select
supplier -> Manage performance.
Answer: B
Rationale: The procurement process begins with identifying needs and
ends with measuring and managing performance .
,4. What is the goal of supply management?
A. To buy products and services at the right price, from the right source,
at the right specification, in the right quantity, for delivery at the right
time, to the right internal customer.
B. To minimize the number of suppliers used.
C. To ensure all purchases are made domestically.
D. To maximize the total cost of ownership.
Answer: A
Rationale: These are the "six rights" or goals of supply management,
ensuring optimal conditions for every purchase .
5. What is the purpose of a quadrant analysis in procurement?
A. To calculate the exact cost of goods sold.
B. To evaluate products/services based on risk exposure and value.
C. To determine the optimal inventory levels.
D. To assess employee performance.
Answer: B
Rationale: Quadrant analysis evaluates the key attributes of
products/services and suppliers based on risk exposure versus value .
, 6. What is a supplier scorecard used for?
A. To track a supplier's contact information.
B. To monitor performance across multiple metrics over time,
categorize suppliers, and offer more business to top performers.
C. To replace the need for a procurement contract.
D. To perform a one-time evaluation of a supplier.
Answer: B
Rationale: Supplier scorecards are used to monitor performance over
an extended period, categorize suppliers, and reward the best
performers with additional business .
7. Why is it important to evaluate supplier performance?
A. To ensure suppliers meet standards, identify potential problems, and
create visibility into the supply chain.
B. To find reasons to immediately terminate supplier contracts.
C. To increase the administrative workload for procurement staff.
D. To reduce the number of suppliers to a single source.
Answer: A
Rationale: Evaluations ensure standards are met and help identify
potential problems that could impact the business .
