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CORE Exam Dumps : Supply Management Core Exam

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Supply Management Core Exam Questions and Answers

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Question 1

Which of the following is the MOST important benefit of implementing a contract management system?

Options:

A.

Greater visibility for reverse auctions

B.

Lower legal staff costs

C.

Access to a cooperative purchasing group

D.

Higher value-added activities

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Question 2

A firm has repeatedly experienced communication problems with three crucial suppliers. The firm's supply manager concludes that many of these problems are the result of not having regular business reviews with these suppliers. However, all three suppliers have indicated that they do not see the value in regular business reviews. Given this situation, which of the following is the BEST course of action for the supplier manager to take?

Options:

A.

Contact the CEO of each supplier and request that they encourage the firm to participate in the business reviews

B.

Advise the suppliers that failure to meet for the reviews will result in payments being suspended

C.

Advise the suppliers that their performance is not acceptable, and that they must improve or face further penalties

D.

Develop a specific agenda for the suppliers that identifies items to address and accomplish during the business review

Question 3

A procurement specialist reviews a report from a financial agency about a potential supplier. The report reveals that the supplier had a lien against some of its assets a few years ago, that the supplier has had several delayed payments over the last few months, and that the supplier's debt-to-equity ratio equals 2.0. Which of the following is the BEST course of action for the procurement specialist to take?

Options:

A.

Inform senior management of the potential supplier's financial status

B.

Exclude the supplier from the bidding process

C.

Inform current suppliers about the potential supplier's financial status

D.

Use the information in considering whether to qualify the supplier

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