MNP3701 – Strategic Sourcing (UNISA)
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1. A sourcing manager consolidates purchases across departments to gain
discounts. This is:
A. Demand aggregation
B. Supplier fragmentation
C. Decentralization
D. Spot buying
Answer: A
Rationale: Aggregating demand increases bargaining power.
2. A supplier collaboration project reduces production defects by 30%. This BEST
demonstrates:
A. Supplier development success
B. Procurement failure
C. Market volatility
D. Contract breach
Answer: A
Rationale: Supplier development improves performance outcomes.
,3. A procurement system uses automation to reduce ordering time. This
improves:
A. Administrative inefficiency
B. Process efficiency
C. Supplier dependence
D. Cost inflation
Answer: B
Rationale: Automation improves procurement efficiency.
4. A sourcing decision ignores supplier financial stability. This increases risk of:
A. Innovation
B. Supply disruption
C. Cost reduction
D. Quality improvement
Answer: B
Rationale: Financial instability can disrupt supply continuity.
5. Strategic sourcing begins with:
A. Supplier payment
B. Needs identification and category analysis
C. Invoice approval
D. Delivery confirmation
Answer: B
Rationale: Sourcing starts with understanding organizational needs.
6. A company shifts procurement from reactive to proactive sourcing. This
means:
A. Buying only when stock is empty
B. Planning purchases strategically in advance
,C. Ignoring suppliers
D. Increasing emergency orders
Answer: B
Rationale: Proactive sourcing involves planning and forecasting.
7. A supplier provides design input during product development. This improves:
A. Procurement delays
B. Innovation and efficiency
C. Inventory loss
D. Contract confusion
Answer: B
Rationale: Supplier input enhances product development.
8. A sourcing strategy that reduces supplier base size is called:
A. Supplier rationalization
B. Supplier expansion
C. Market diversification
D. Demand inflation
Answer: A
Rationale: Rationalization improves control and efficiency.
9. A procurement officer uses historical data to predict demand. This is:
A. Forecasting
B. Guessing
C. Random buying
D. Contract negotiation
Answer: A
Rationale: Forecasting uses data to anticipate demand.
, 10. A supplier consistently exceeds expectations and is given more business.
This is:
A. Supplier reward strategy
B. Supplier punishment
C. Contract cancellation
D. Risk elimination
Answer: A
Rationale: High-performing suppliers are rewarded with more business.
11. A sourcing manager evaluates geopolitical risk in supplier countries. This is
part of:
A. Risk analysis
B. Inventory control
C. Payment processing
D. Invoice auditing
Answer: A
Rationale: Geopolitical risks affect global supply chains.
12. A company uses long-term contracts to stabilize pricing. This is:
A. Price hedging strategy
B. Spot buying
C. Emergency procurement
D. Random sourcing
Answer: A
Rationale: Long-term contracts stabilize cost volatility.
13. A supplier is selected solely based on lowest bid but fails delivery timelines.
This indicates failure of:
Practice Exam Questions with Correct
Answers (Verified Answers) plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A sourcing manager consolidates purchases across departments to gain
discounts. This is:
A. Demand aggregation
B. Supplier fragmentation
C. Decentralization
D. Spot buying
Answer: A
Rationale: Aggregating demand increases bargaining power.
2. A supplier collaboration project reduces production defects by 30%. This BEST
demonstrates:
A. Supplier development success
B. Procurement failure
C. Market volatility
D. Contract breach
Answer: A
Rationale: Supplier development improves performance outcomes.
,3. A procurement system uses automation to reduce ordering time. This
improves:
A. Administrative inefficiency
B. Process efficiency
C. Supplier dependence
D. Cost inflation
Answer: B
Rationale: Automation improves procurement efficiency.
4. A sourcing decision ignores supplier financial stability. This increases risk of:
A. Innovation
B. Supply disruption
C. Cost reduction
D. Quality improvement
Answer: B
Rationale: Financial instability can disrupt supply continuity.
5. Strategic sourcing begins with:
A. Supplier payment
B. Needs identification and category analysis
C. Invoice approval
D. Delivery confirmation
Answer: B
Rationale: Sourcing starts with understanding organizational needs.
6. A company shifts procurement from reactive to proactive sourcing. This
means:
A. Buying only when stock is empty
B. Planning purchases strategically in advance
,C. Ignoring suppliers
D. Increasing emergency orders
Answer: B
Rationale: Proactive sourcing involves planning and forecasting.
7. A supplier provides design input during product development. This improves:
A. Procurement delays
B. Innovation and efficiency
C. Inventory loss
D. Contract confusion
Answer: B
Rationale: Supplier input enhances product development.
8. A sourcing strategy that reduces supplier base size is called:
A. Supplier rationalization
B. Supplier expansion
C. Market diversification
D. Demand inflation
Answer: A
Rationale: Rationalization improves control and efficiency.
9. A procurement officer uses historical data to predict demand. This is:
A. Forecasting
B. Guessing
C. Random buying
D. Contract negotiation
Answer: A
Rationale: Forecasting uses data to anticipate demand.
, 10. A supplier consistently exceeds expectations and is given more business.
This is:
A. Supplier reward strategy
B. Supplier punishment
C. Contract cancellation
D. Risk elimination
Answer: A
Rationale: High-performing suppliers are rewarded with more business.
11. A sourcing manager evaluates geopolitical risk in supplier countries. This is
part of:
A. Risk analysis
B. Inventory control
C. Payment processing
D. Invoice auditing
Answer: A
Rationale: Geopolitical risks affect global supply chains.
12. A company uses long-term contracts to stabilize pricing. This is:
A. Price hedging strategy
B. Spot buying
C. Emergency procurement
D. Random sourcing
Answer: A
Rationale: Long-term contracts stabilize cost volatility.
13. A supplier is selected solely based on lowest bid but fails delivery timelines.
This indicates failure of:
