CLA Procurement & Strategic Sourcing

Question 1

Which procurement strategy involves purchasing from a single supplier to leverage volume discounts and build a strong partnership?

Accepted Answer

Single sourcing

Answer

Multiple sourcing

Answer

Global sourcing

Answer

Spot buying

Question 2

What is the primary purpose of a Request for Proposal (RFP) in procurement?

Accepted Answer

To invite suppliers to bid on a specific requirement with detailed specifications

Answer

To notify suppliers of a contract award

Answer

To request an invoice from a supplier

Answer

To cancel an existing purchase order

Question 3

Total Cost of Ownership (TCO) in procurement includes which of the following beyond the purchase price?

Accepted Answer

Acquisition, operating, maintenance, and disposal costs

Answer

Only the unit price and shipping costs

Answer

Supplier profit margin and overhead

Answer

Import duties only

Question 4

A blanket purchase order (BPO) is best used when a buyer needs to:

Accepted Answer

Purchase recurring items from a supplier over a set period at agreed prices

Answer

Order a one-time large shipment

Answer

Solicit competitive bids for a new product

Answer

Return defective goods to a supplier

Question 5

Which method of supplier evaluation scores vendors across multiple criteria such as quality, delivery, and price?

Accepted Answer

Weighted scorecard

Answer

ABC analysis

Answer

Economic order quantity

Answer

Kanban system

Question 6

Make-or-buy analysis in procurement evaluates whether a company should:

Accepted Answer

Produce a component internally or purchase it from an external supplier

Answer

Increase or decrease safety stock levels

Answer

Use air or ocean freight for shipment

Answer

Expand warehouse space or outsource storage