BUAD 331 STUDY GUIDE 2026 EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔What supplier management tool is the standard to continuously track a supplier's
performance and financial health and ensure that key goals are being met?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
E. Sourcing Projects - ✔✔D. Scorecards
✔✔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 - ✔✔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 - ✔✔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. - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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.
E. Automate the purchasing process with the suppliers. - ✔✔A. Provide an
uninterrupted flow of the appropriate quality materials and services
✔✔Both objective and subjective measures are used to measure the performance of
suppliers. Which of the following is NOT true regarding objective and subjective
measures?
A. Objective (Hard) Measures are quantitative
B. Subjective (Soft) Measures are based on preference or judgment
C. An example of a subjective measure is supplier on-time delivery
D. Subjective measures can be biased and dependent on the user.
E. All of the above are true. - ✔✔C. An example of a subjective measure is supplier on-
time delivery
✔✔What term is best described as the process of combining purchasing requirements
across operating units in order to capitalize on suppliers' fixed cost allocations and
improvements in suppliers' productivity?
A. Leveraging
B. Specifying
C. Spot Buying
D. Strategizing
E. Contracting - ✔✔A. Leveraging
ANSWERS RATED A+
✔✔What supplier management tool is the standard to continuously track a supplier's
performance and financial health and ensure that key goals are being met?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
E. Sourcing Projects - ✔✔D. Scorecards
✔✔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 - ✔✔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 - ✔✔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. - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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.
E. Automate the purchasing process with the suppliers. - ✔✔A. Provide an
uninterrupted flow of the appropriate quality materials and services
✔✔Both objective and subjective measures are used to measure the performance of
suppliers. Which of the following is NOT true regarding objective and subjective
measures?
A. Objective (Hard) Measures are quantitative
B. Subjective (Soft) Measures are based on preference or judgment
C. An example of a subjective measure is supplier on-time delivery
D. Subjective measures can be biased and dependent on the user.
E. All of the above are true. - ✔✔C. An example of a subjective measure is supplier on-
time delivery
✔✔What term is best described as the process of combining purchasing requirements
across operating units in order to capitalize on suppliers' fixed cost allocations and
improvements in suppliers' productivity?
A. Leveraging
B. Specifying
C. Spot Buying
D. Strategizing
E. Contracting - ✔✔A. Leveraging
