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CORE Exam Dumps : Supply Management Core Exam

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Supply Management Core Exam Questions and Answers

Question 1

FGH, Inc. has purchased components from Supplier A for many years. The supplier's performance has been very good, with reliable deliveries and consistently high quality. As contract renewal approaches, Supplier A informs FGH's supply manager that a significant price increase is anticipated, based primarily on the costs of building a new production facility. The supply manager has been directed to negotiate a new contract with Supplier A only if it agrees to maintain current pricing. Which of the following is the BEST way for the supply manager to prepare for negotiations with Supplier A?

Options:

A.

Determine if the parts made by Supplier A can be produced elsewhere

B.

Discuss alternate product designs with engineering

C.

Enlist FGH's executive management to participate in negotiations

D.

Research into whether Supplier A's recent expansion costs are reasonable

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Question 2

A supply management department obtains executive support to adopt category management. Which of the following is a key step in establishing the categories to be managed?

Options:

A.

Developing a category management governance structure

B.

Conducting a Pareto analysis

C.

Developing category-specific action plans

D.

Conducting a spend and forecast analysis

Question 3

One of TUV Company's largest suppliers has been performing poorly, and the quality of its services does not meet the needs of a particular stakeholder. Which of the following is the BEST way for TUV's supply manager to evaluate how to establish service level agreements (SLAs) to improve the performance of this supplier?

Options:

A.

Request that the supplier provide a set of metrics to be used in measuring performance

B.

Develop measurements of supplier performance with the stakeholder, and include those measurements in an amendment to the contract

C.

Notify the supplier that its level of performance is not acceptable, and renegotiate contract pricing to reflect the supplier's performance

D.

Notify the supplier of the performance issues, and terminate the contract if the supplier does not correct performance within thirty days