BUAD 331 EXAM 2 COMPREHENSIVE TEST SET
2026 COMPLETE ANSWERS VERIFIED
◉ 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.
E. Automate the purchasing process with the suppliers.. Answer: 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.. Answer: 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. Answer: A. Leveraging
◉ You are a supply manager at a large US bank and you are
responsible for buying marketing and creative services (advertising,
etc.). The marketing services category represents a substantial
amount of procurement spend and the suppliers that compete in
, this industry tend to have very different capabilities. Consider the
Kraljic matrix and classify this purchase.
A. Leverage item.
B. Bottleneck item.
C. Strategic item.
D. Non-critical item.
E. None of these are the appropriate classification for this
component.. Answer: C. Strategic item.
◉ The purchasing function contributes to the type and bottom line
of an organization.
A. True
B. False. Answer: A. True
◉ Which of the following is generally NOT true about supply
management and the bottom line (net profit to the firm)?
A. Purchased items account for a large percentage of the cost of
goods sold. Hence, a reduction in cost of purchased goods has a
major impact on the bottom line
B. A Euro increase in sales is equivalent to a Euro decrease in
materials cost in impacting the bottom line
C. Outsourcing can allow firms to focus on their core competencies,
possibly reducing waste, which then has the potential to improve the
bottom line
2026 COMPLETE ANSWERS VERIFIED
◉ 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.
E. Automate the purchasing process with the suppliers.. Answer: 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.. Answer: 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. Answer: A. Leveraging
◉ You are a supply manager at a large US bank and you are
responsible for buying marketing and creative services (advertising,
etc.). The marketing services category represents a substantial
amount of procurement spend and the suppliers that compete in
, this industry tend to have very different capabilities. Consider the
Kraljic matrix and classify this purchase.
A. Leverage item.
B. Bottleneck item.
C. Strategic item.
D. Non-critical item.
E. None of these are the appropriate classification for this
component.. Answer: C. Strategic item.
◉ The purchasing function contributes to the type and bottom line
of an organization.
A. True
B. False. Answer: A. True
◉ Which of the following is generally NOT true about supply
management and the bottom line (net profit to the firm)?
A. Purchased items account for a large percentage of the cost of
goods sold. Hence, a reduction in cost of purchased goods has a
major impact on the bottom line
B. A Euro increase in sales is equivalent to a Euro decrease in
materials cost in impacting the bottom line
C. Outsourcing can allow firms to focus on their core competencies,
possibly reducing waste, which then has the potential to improve the
bottom line
