Question 1
A supply manager issues a request to proposal for engineering services. In order to provide
clarification on the specification on the specifications, the company holds a question-and-
answer session for interested suppliers. Shortly after the question-and-answer session is
held and before any proposals are actually received, the firm's engineering department
revises the specifications. Given this situation, which of the following should the supply
manager do FIRST?
(A) Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
(B) Write a letter to each supplier advising of the change, tell each supplier when the new
specifications will be available, and ask for immediate notification if additional time will be
required.
(C) Hold an interim pre-bid meeting withal suppliers to discuss and clarify the revi
CORRECT ANSWER
(A) Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
Question 2
Which of the following should have the MOST influence in determining end product
specifications, so as to minimize the potential for returns?
(A) Marketing
(B) Supply management
(C) Engineering
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,(D) Manufacturing
CORRECT ANSWER
(A) Marketing
Question 3
When developing specifications, a buyer may consider information from which of the
following?
I. Suppliers
II. Industry Standards
III. Professional Organizations
IV. Competitors
(A) I and IV only
(B) II and III only
(C) I, II and III only
(D) I, II, III and IV
CORRECT ANSWER
(D) I, II, III and IV
Question 4
A supply manager completes a category profile and identifies services provided through
multiple suppliers. A market and industry analysis shows that the service provides are
growing their businesses by acquiring competitors, thus enabling them to provide a
greater range of services. Which of the following techniques will BEST enable the supply
manager to leverage market competition?
(A) Lotting strategy
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,(B) Market-basket model
(C) Market segmentation
(D) Sole sourcing
CORRECT ANSWER
(A) Lotting strategy
Question 5
A supply manager implements a system whereby the potential supplier names are hidden
until final contract awards are made. This example is BEST described as ensuring
(A) confidential information is protected
(B) diversity initiatives are met
(C) total costs are minimized
(D) collusion will not occur
CORRECT ANSWER
(A) confidential information is protected
Question 6
A supply manager for a privately held manufacturing company is preparing an RFP for raw
materials. None of
the RFP recipients is an incumbent, and the award resulting from the RFP is expected to be
of significant dollar value. The supply manager is concerned that the lack of publicly
available financial information could impact willingness of the prospective suppliers to
submit proposals. Which of the following will BEST address the concerns of the prospective
bidders?
(A) Escrow account
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, (B) Letter of credit
(C) Payment bond
(D) Surety bond
CORRECT ANSWER
(B) Letter of credit
Question 7
Which of the following is the LEAST critical element in a best alternative to a negotiated
agreement (BATNA)?
(A) Alternate products
(B) In-house capabilities
(C) Source options
(D) Supplier capabilities
CORRECT ANSWER
(D) Supplier capabilities
Question 8
A supply manager is negotiating with a critical supplier. The parties have relatively equal
bargaining power. Which of the following would MOST likely occur in "win-win"
negotiation between these parties?
(A) The supply manager and supplier conclude the negotiation by splitting the difference
between their respective positions.
(B) The supply manager and supplier each find concessions with equal weight/value to
provide a balanced outcome.
(C) The supply manager and supplier decide to share confidential information.
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A supply manager issues a request to proposal for engineering services. In order to provide
clarification on the specification on the specifications, the company holds a question-and-
answer session for interested suppliers. Shortly after the question-and-answer session is
held and before any proposals are actually received, the firm's engineering department
revises the specifications. Given this situation, which of the following should the supply
manager do FIRST?
(A) Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
(B) Write a letter to each supplier advising of the change, tell each supplier when the new
specifications will be available, and ask for immediate notification if additional time will be
required.
(C) Hold an interim pre-bid meeting withal suppliers to discuss and clarify the revi
CORRECT ANSWER
(A) Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
Question 2
Which of the following should have the MOST influence in determining end product
specifications, so as to minimize the potential for returns?
(A) Marketing
(B) Supply management
(C) Engineering
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@THE STUDY VAULT
,(D) Manufacturing
CORRECT ANSWER
(A) Marketing
Question 3
When developing specifications, a buyer may consider information from which of the
following?
I. Suppliers
II. Industry Standards
III. Professional Organizations
IV. Competitors
(A) I and IV only
(B) II and III only
(C) I, II and III only
(D) I, II, III and IV
CORRECT ANSWER
(D) I, II, III and IV
Question 4
A supply manager completes a category profile and identifies services provided through
multiple suppliers. A market and industry analysis shows that the service provides are
growing their businesses by acquiring competitors, thus enabling them to provide a
greater range of services. Which of the following techniques will BEST enable the supply
manager to leverage market competition?
(A) Lotting strategy
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@THE STUDY VAULT
,(B) Market-basket model
(C) Market segmentation
(D) Sole sourcing
CORRECT ANSWER
(A) Lotting strategy
Question 5
A supply manager implements a system whereby the potential supplier names are hidden
until final contract awards are made. This example is BEST described as ensuring
(A) confidential information is protected
(B) diversity initiatives are met
(C) total costs are minimized
(D) collusion will not occur
CORRECT ANSWER
(A) confidential information is protected
Question 6
A supply manager for a privately held manufacturing company is preparing an RFP for raw
materials. None of
the RFP recipients is an incumbent, and the award resulting from the RFP is expected to be
of significant dollar value. The supply manager is concerned that the lack of publicly
available financial information could impact willingness of the prospective suppliers to
submit proposals. Which of the following will BEST address the concerns of the prospective
bidders?
(A) Escrow account
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@THE STUDY VAULT
, (B) Letter of credit
(C) Payment bond
(D) Surety bond
CORRECT ANSWER
(B) Letter of credit
Question 7
Which of the following is the LEAST critical element in a best alternative to a negotiated
agreement (BATNA)?
(A) Alternate products
(B) In-house capabilities
(C) Source options
(D) Supplier capabilities
CORRECT ANSWER
(D) Supplier capabilities
Question 8
A supply manager is negotiating with a critical supplier. The parties have relatively equal
bargaining power. Which of the following would MOST likely occur in "win-win"
negotiation between these parties?
(A) The supply manager and supplier conclude the negotiation by splitting the difference
between their respective positions.
(B) The supply manager and supplier each find concessions with equal weight/value to
provide a balanced outcome.
(C) The supply manager and supplier decide to share confidential information.
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@THE STUDY VAULT
