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Supply Management Core Exam

Last Update Jul 26, 2024
Total Questions : 312 With Methodical Explanation

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INTE Total Questions : 167 Updated : Jul 26, 2024
LEAD Total Questions : 165 Updated : Jul 26, 2024

Supply Management Core Exam Questions and Answers

Questions 1

EFG uses specialized components from Supplier A in the manufacture of state-of-the-art testing equipment. Supplier A has been very successful in meeting EFG's stringent quality specifications, which has been critical for EFG.

EFG learns that Supplier A plans to acquire a smaller firm which makes components similar to those under contract with EFG. EFG is concerned that the supplier may transfer its contract to the new subsidiary, leading to compromises in quality. Given this situation, which of the following is the BEST course of action for EFG to take?

Options:

A.

Negotiate with Supplier A to remove the changes clause from the contract

B.

Negotiate with Supplier A to strengthen the indemnification clause in the contract

C.

Negotiate with Supplier A to add a consent of assignment clause to the contract

D.

Take no action, as Supplier A must supply the chips at the same quality level no matter who manufactures them

Questions 2

Which of the following is the PRIMARY reason why companies should consistently update internal purchasing policies?

Options:

A.

Suppliers might believe they can take advantage of an organization that fails to consistently update policies.

B.

Updating policies is a key metric senior management uses to measure the impact of the purchasing organization on the business.

C.

Auditors expect updates on a regular basis to ensure that the company is consistently reviewing procedures.

D.

The company and market place are constantly undergoing changes.

Questions 3

The supply manager for TUV Inc. is planning for negotiations with a supplier of software critical to TUV's order processing system. The supplier informs the supply manager that support for this software will soon be dropped. Upgrading to a newer version will be cost prohibitive for TUV. Given this situation, which of the following is the BEST course of action for TUV's supply manager to take prior to negotiations?

Options:

A.

Contact each team member, ask for ideas on how to negotiate, and confirm what the priorities should be

B.

Engage a trainer to teach the team members the latest negotiating strategies and techniques

C.

Discuss roles, requirements, and strategies with team members, including what information should or should not be shared

D.

Hold a practice session where team members can debate key points one-on-one

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