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L4M6 Exam Dumps : Supplier Relationships

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Supplier Relationships Questions and Answers

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Question 1

Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent price increase. What is this tactic known as?

Options:

A.

Spot buying

B.

Forward buying

C.

Derivative buying

D.

Hedging buying

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Question 2

Kyle Crant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000. What is the primary aim of this policy?

Options:

A.

To ensure value for money is achieved

B.

To allow procurement to select the lowest price

C.

To enable a reduction in competition

D.

To deliver an agile process

Question 3

In public sector procurement, according to EU legislation, certain items must be procured via open-competition. What type of items are these?

Options:

A.

Items that are imported from outside the EU

B.

Items of high value

C.

Items of strategic importance

D.

Items that are produced by lots of suppliers

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