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L4M6 Exam Dumps : Supplier Relationships

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Supplier Relationships Questions and Answers

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Question 1

A procurement manager has established a project steering committee to undertake regular reviews and audits, and to ensure a successful buyer/supplier long-term partnership. The committee membership will comprise the procurement manager (chairperson), three of their cross-functional colleagues, the supplier's partnership project manager, and an independent member. Which of the following is a potential disadvantage of the proposed committee structure?

Options:

A.

The committee includes an independent member

B.

The supplier does not have equal membership in the committee

C.

The size of the committee is too large as there should be a limit of three members

D.

The procurement manager should not be the chairperson of the committee

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Question 2

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

Question 3

Which of the following are advantages of partnering?

Options:

A.

Supply chain consolidation

B.

Continual improvement

C.

Hard to displace

D.

Prioritization of transactions

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