SCMN 2150 UNIT 5 QUIZ EXAM PRACTICE QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE Q&A .
SCMN 2150 Unit 5 Practice Questions — Batch 1 (Questions 1–50)
1. What is the best definition of Procurement?
A. Buying goods at the lowest unit price
B. Buying merchandise or services at the optimum possible total cost in
the correct amount and quality
C. Only purchasing direct materials for production
D. Managing supplier relationships to reduce risk
Answer: B
Rationale: Procurement is defined as the purchase of merchandise or
services at the optimum possible total cost in the correct amount and
quality .
2. What is the core difference between traditional purchasing and
strategic sourcing?
A. Traditional purchasing focuses on total cost of ownership; strategic
sourcing focuses on unit price
,B. Traditional purchasing focuses on lowest unit cost; strategic sourcing
focuses on best possible value and total cost of ownership
C. There is no difference between the two
D. Strategic sourcing only applies to service procurement
Answer: B
Rationale: Traditional sourcing is about sourcing goods at the lowest
possible cost per unit, whereas strategic sourcing is about creating the
best possible value and looking at the total cost of ownership .
3. Which of the following is a characteristic of Strategic Sourcing?
A. Focuses only on short-term transaction prices
B. An institutional procurement process that continuously improves
and re-evaluates the purchasing activities of a company
C. Replacing suppliers as frequently as possible
D. Only applicable to non-critical item procurement
Answer: B
Rationale: Strategic sourcing is defined as an institutional procurement
process that continuously improves and re-evaluates the purchasing
activities of a company .
,4. The goals of supply management can be summarized as buying
products and services with seven “rights.” Which of the following is
NOT one of these rights?
A. Right Price
B. Right Source
C. Right Inventory Level
D. Right Time
Answer: C
Rationale: The goals of supply management are 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. “Right Inventory Level” is not part of this
standard statement .
5. What is the first step in the five-step procurement process?
A. Evaluate supplier options
B. Identify material and service needs
C. Select the best supplier
D. Release orders and receive products
Answer: B
, Rationale: The first step in the five-step procurement process is to
identify material and service needs .
6. In which step of the procurement process do you rate suppliers
based on their capability, capacity, and past performance?
A. Identify material and service needs
B. Evaluate potential suppliers
C. Select the best supplier
D. Measure and manage performance
Answer: B
Rationale: In the evaluate potential suppliers step, you rate suppliers
based on their capability, capacity, and past performance .
7. In which step of the procurement process do you electronically
transmit requirements to suppliers about needed model numbers,
quantities, and delivery dates?
A. Identify material and service needs
B. Evaluate supplier options
C. Select supplier
D. Order release
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE Q&A .
SCMN 2150 Unit 5 Practice Questions — Batch 1 (Questions 1–50)
1. What is the best definition of Procurement?
A. Buying goods at the lowest unit price
B. Buying merchandise or services at the optimum possible total cost in
the correct amount and quality
C. Only purchasing direct materials for production
D. Managing supplier relationships to reduce risk
Answer: B
Rationale: Procurement is defined as the purchase of merchandise or
services at the optimum possible total cost in the correct amount and
quality .
2. What is the core difference between traditional purchasing and
strategic sourcing?
A. Traditional purchasing focuses on total cost of ownership; strategic
sourcing focuses on unit price
,B. Traditional purchasing focuses on lowest unit cost; strategic sourcing
focuses on best possible value and total cost of ownership
C. There is no difference between the two
D. Strategic sourcing only applies to service procurement
Answer: B
Rationale: Traditional sourcing is about sourcing goods at the lowest
possible cost per unit, whereas strategic sourcing is about creating the
best possible value and looking at the total cost of ownership .
3. Which of the following is a characteristic of Strategic Sourcing?
A. Focuses only on short-term transaction prices
B. An institutional procurement process that continuously improves
and re-evaluates the purchasing activities of a company
C. Replacing suppliers as frequently as possible
D. Only applicable to non-critical item procurement
Answer: B
Rationale: Strategic sourcing is defined as an institutional procurement
process that continuously improves and re-evaluates the purchasing
activities of a company .
,4. The goals of supply management can be summarized as buying
products and services with seven “rights.” Which of the following is
NOT one of these rights?
A. Right Price
B. Right Source
C. Right Inventory Level
D. Right Time
Answer: C
Rationale: The goals of supply management are 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. “Right Inventory Level” is not part of this
standard statement .
5. What is the first step in the five-step procurement process?
A. Evaluate supplier options
B. Identify material and service needs
C. Select the best supplier
D. Release orders and receive products
Answer: B
, Rationale: The first step in the five-step procurement process is to
identify material and service needs .
6. In which step of the procurement process do you rate suppliers
based on their capability, capacity, and past performance?
A. Identify material and service needs
B. Evaluate potential suppliers
C. Select the best supplier
D. Measure and manage performance
Answer: B
Rationale: In the evaluate potential suppliers step, you rate suppliers
based on their capability, capacity, and past performance .
7. In which step of the procurement process do you electronically
transmit requirements to suppliers about needed model numbers,
quantities, and delivery dates?
A. Identify material and service needs
B. Evaluate supplier options
C. Select supplier
D. Order release
