CORE Exam Dumps : Supply Management Core Exam

Calculate Total Cost per Supplier: This includes the unit price and shipping costs.

Supplier A: Unit cost is $0.69. Shipping cost is $2000 per 10,000 units.

Total cost per unit: $0.69 + ($2000/10,000) = $0.69 + $0.20 = $0.71 per unit.

Supplier B: Unit cost is $0.71. Shipping cost is $1500 per 10,000 units.

Total cost per unit: $0.71 + ($1500/10,000) = $0.71 + $0.15 = $0.715 per unit.

Compare Landed Prices: The total cost per unit for Supplier A is $0.71, and for Supplier B, it is $0.715.

Decision: Supplier A offers the lower landed price at $0.71 per unit compared to Supplier B’s $0.715 per unit.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.

Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.

A cash flow budget is a financial plan that links expenditures to revenue within each budgetary period. It details the expected cash inflows and outflows over a specified period, allowing a business to plan for covering expenses with anticipated revenue. This type of budget is crucial for managing liquidity and ensuring that the company can meet its financial obligations as they come due.

References

"Financial Management: Theory & Practice," Eugene F. Brigham and Michael C. Ehrhardt.

"Principles of Corporate Finance," Richard A. Brealey, Stewart C. Myers, and Franklin Allen.

Importance of Data Accuracy: Accurate and reliable data is crucial for effective spend analysis and sourcing strategies.

Data Cleansing: Cleansing data ensures that errors, duplicates, and inconsistencies are removed, leading to more accurate analysis.

Foundation for Analysis: Clean and accurate data forms the foundation for reliable and

meaningful spend analysis, which supports both sourcing strategies and budget planning. 4. Stakeholder Confidence: Ensuring data integrity will increase stakeholder confidence in the spend analysis matrix.

Sub-Initiative Leadership: Leading the data cleansing initiative ensures that the director oversees the process and maintains high standards. References

CIPS (Chartered Institute of Procurement & Supply) guidelines on spend analysis and data management.