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CORE Exam Dumps : Supply Management Core Exam

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Supply Management Core Exam Questions and Answers

Question 1

A supply management department is asked to obtain lower prices from suppliers. Through its efforts, the department manages to achieve a 5% reduction in indirect spend categories. However, some stakeholders request more items, keeping total expenditures about the same despite lower per-item costs.

Which of the following will be the BEST long-term approach for supply management to improve upon this situation?

Options:

A.

Refrain from processing orders for additional items unless there is a compelling justification

B.

Report the problem to top management, citing the departments with the poorest records

C.

Work with leadership to implement a more effective demand management program

D.

Accept additional orders only if the requesting department has at least a 5% overall reduction in spend

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Question 2

DEF, Inc. is a multinational oil company expanding into a new geographic region. The firm's policy is to purchase locally for its operations whenever possible. Thus, DEF needs to find sources of materials, basic equipment, and standard bulk items within the new region. Which of the following should DEF do FIRST?

Options:

A.

Issue a Request for Quotation (RFQ)

B.

Conduct a suppliers' conference

C.

Issue a Request for Information (RFI)

D.

Issue a Request for Proposal (RFP)

Question 3

A company that makes specialized equipment for a very competitive industry relies on several critical engineered imported components. The components present a high degree of risk that could impact the future growth of the company. Given this situation, which of the following is the BEST course of action for the buying organization to take when preparing for negotiations with suppliers?

Options:

A.

Ask suppliers to analyze potential sources of risk for all components and raw materials

B.

Change sources of any components or raw materials that are imported from high-risk countries

C.

Require suppliers to provide risk insurance, with the buying organization listed as contingency beneficiary

D.

Determine with senior management and internal stakeholders the acceptable levels of risk for each product