Domain VI -CPPB Exam Questions with Correct Answers What is a SWOT analysis? - Answer -Strength, Weaknesses, Opportunities & Threats Strengths are _________ situations that will help achieve the organizations objectives. - Answer -Internal Opportunities can be - Answer -Internal or external ______ __ are external challenges to the success of the entity's objectives? - Answer -
Threats What principle theorizes that 20% of the people yields 80% of the production while 80% of the people yield only 20% of what you do yields 80% of the results. - Answer -The Pareto Principle A process of collecting, cleansing, classifying and analyzing expenditure data from all sources w/in the organization. - Answer -Spend analysis A spend analysis should answer the following questions. - Answer -What am I really spending? With whom a I spending it? Am I getting what's been promised for that spend? What is a procurement profile? - Answer -A procurement profile is the result produced after conducting a series of various analyses on the procurement expenditure of an organizat ion. A buying plan is based on? - Answer -demand, market and supplier analysis A success value analysis verified? - Answer -the procurement of the best product or service for the need. To prepare to participate in the strategic procurement plan the procurement professional must use? - Answer -best understand the who, what, when and why and how in the market. Procurement professionals may use what materials to analyze the market? - Answer -
Journals, indexes, supplier shows, industry forums, internet, websites and discussions with colleagues. Market research is critical to the procurement professional because it gives? - Answer -
Current information Buying when prices are high or the product is in short demand results in ? - Answer -
Over payment _____________ is a tool to determine future need? - Answer -Forecasting _________________ should be used to determine which type of solicitation to use, such as spot bid or term contract? - Answer -Forecasting Forecasting requires knowledge of the? - Answer -economy/market What is PMI? - Answer -Purchasing Manager's Index Why is PMI used? - Answer -Provides an indication of what will occur in the future based upon past trends. Indexes are categorized a s? - Answer -diffusion indexes, they measure change in economic and business activity. ________________ is a tool used to determine future needs. - Answer -Forecasting A key function of inventory management is? - Answer -Forecasting Fixed Period Average - Answer -Simple way of forecasting future trends but must be used carefully because it will reflect old patterns and not the current directions. Moving average method - Answer -A continuous average method used to gather the most current usage information abo ut an item by taking trends into account and always using the most recent data. Weighted moving average method - Answer -Builds even more accuracy into the system by giving more significance to weighting specific information such as season variations. Mean absolute deviation (MAD) - Answer -The small the value of MAD, the more accurate the forecast.
Threats What principle theorizes that 20% of the people yields 80% of the production while 80% of the people yield only 20% of what you do yields 80% of the results. - Answer -The Pareto Principle A process of collecting, cleansing, classifying and analyzing expenditure data from all sources w/in the organization. - Answer -Spend analysis A spend analysis should answer the following questions. - Answer -What am I really spending? With whom a I spending it? Am I getting what's been promised for that spend? What is a procurement profile? - Answer -A procurement profile is the result produced after conducting a series of various analyses on the procurement expenditure of an organizat ion. A buying plan is based on? - Answer -demand, market and supplier analysis A success value analysis verified? - Answer -the procurement of the best product or service for the need. To prepare to participate in the strategic procurement plan the procurement professional must use? - Answer -best understand the who, what, when and why and how in the market. Procurement professionals may use what materials to analyze the market? - Answer -
Journals, indexes, supplier shows, industry forums, internet, websites and discussions with colleagues. Market research is critical to the procurement professional because it gives? - Answer -
Current information Buying when prices are high or the product is in short demand results in ? - Answer -
Over payment _____________ is a tool to determine future need? - Answer -Forecasting _________________ should be used to determine which type of solicitation to use, such as spot bid or term contract? - Answer -Forecasting Forecasting requires knowledge of the? - Answer -economy/market What is PMI? - Answer -Purchasing Manager's Index Why is PMI used? - Answer -Provides an indication of what will occur in the future based upon past trends. Indexes are categorized a s? - Answer -diffusion indexes, they measure change in economic and business activity. ________________ is a tool used to determine future needs. - Answer -Forecasting A key function of inventory management is? - Answer -Forecasting Fixed Period Average - Answer -Simple way of forecasting future trends but must be used carefully because it will reflect old patterns and not the current directions. Moving average method - Answer -A continuous average method used to gather the most current usage information abo ut an item by taking trends into account and always using the most recent data. Weighted moving average method - Answer -Builds even more accuracy into the system by giving more significance to weighting specific information such as season variations. Mean absolute deviation (MAD) - Answer -The small the value of MAD, the more accurate the forecast.
