Supplier Management MCQs
Supplier Management MCQs
Answer these 30+ Supplier Management MCQs and see how sharp is your knowledge of Supplier Management. Scroll down and let's start!
1: Any difference in value to be gained between the buyer and the supplier is known as
A. Bargaining surplus
B. Process simulation
C. Relationship rating
D. Route sheet
2: Blanket purchase order is a purchase order used for ______ purchases made on multiple delivery dates scheduled over a period of time
A. Small-term
B. Long-term
C. Short-term
D. Medium-term
3: The process of allowing interested suppliers to review a company’s RFP or RFQ electronically and submit a bid for the job is known as
A. Cost of good
B. Competitive bidding
C. Cost of poor quality
D. Cost-plus contracts
4: Which of the correct statement about Cost of goods sold
A. Expenses incurred from purchasing the supplies used to make products
B. Additional production and material expenses incurred as a result of scrap and rework
C. An agreement that allows a supplier to be paid in full for all reasonable expenses
D. None of these
5: Cost of poor quality is a additional production and material expenses incurred as a result of scrap and rework
A. True
B. False
6: Which statement correct about Cost-plus contracts
A. Expenses incurred from purchasing the supplies used to make products
B. Additional production and material expenses incurred as a result of scrap and rework
C. Supplier to be paid in full for all reasonable expenses incurred up to a preset limit as well as an additional sum
D. None of these
7: Direct materials purchase is the purchase of materials that are directly incorporated into the production of finished goods and include most raw materials and components
A. True
B. False
8: Fixed-price contract is an agreement in which set prices are not subject to any change regardless of changes in the _____
A. External environment
B. Internal environment
C. Surrounding environment
D. None of these
9: Indirect materials purchase is the purchase of materials not directly used in the ______ but that support their production
A. Finished product
B. Start product
C. During product
D. Both a & b
10: A strategic alliance in which two firms create an independent company by sharing their resources and capabilities is known as
A. Joint venture
B. Reject venture
C. Combine venture
D. Both b & c
11: Keiretsu network is a strategic alliance common among ______ in which manufacturers and their suppliers of raw materials and components form a coalition
A. American businesses
B. Indian businesses
C. Japanese businesses
D. Pakistani businesses
12: Define Multiple-sourcing strategy
A. A plan to contract with several suppliers to ensure that backup supplies are available
B. A process in which a buyer and supplier bargain on the contractual terms of a purchase
C. A purchase order for purchases to be made on approximate dates at specified quantities when inventories run low
D. All statement are about Multiple-sourcing strategy
13: ______ is a process in which a buyer and supplier bargain on the contractual terms of a purchase, such as its price, payment terms, and delivery
A. Negotiation
B. Quantity-flexibility
C. Reverse auctions
D. Planned purchase
14: Solution for selecting suppliers in which suppliers compete for the buyer’s business by offering their products or services at lower and lower prices
A. Negotiation purchase
B. Quantity-flexibility
C. Online reverse auctions
D. Planned purchase
15: A purchase order for purchases to be made on approximate dates at specified quantities when inventories run low is known as
A. Negotiation
B. Quantity-flexibility
C. Online reverse auctions
D. Planned Planned purchase
16: A purchase order is a contract between the _______ and it gives specific information like product or services to be delivered
A. Buyer and supplier
B. SEO and employ
C. Manager and Employ
D. None of these
17: An agreement in which the buyer has the flexibility to change the quantity purchased based on the buyer’s is known as
A. Quantity-flexibility contract
B. Request for proposal
C. Single-sourcing strategy
D. Revenue-sharing contract
18: RFP stands for
A. Request for proposal
B. Radio frequency Frequency
C. Request Financial Planning
D. Both a & b
19: An agreement where the supplier and the buyer or manufacturer share the revenue generated from the sale of the products is known as
A. Revenue-sharing contract
B. Single-sourcing strategy
C. Sourcing strategy
D. Revenue-sharing contract
20: Single-sourcing strategy is a plan to contract ______ when purchasing a particular item, enhancing the cooperation between the buyer and the supplier
A. With a double supplier
B. With a triple supplier
C. With a single supplier
D. Both b & c
21: _______ purchase order used for one-time purchases
A. Standard purchase order
B. Planned Planned purchase
C. Standard Planned purchase
D. Supplier scorecard
22: Supplier scorecard is used to evaluate the performance of suppliers
A. True
B. False
23: The process of determining the best number of suppliers to purchase is known as
A. Total cost of ownership (TCO)
B. Planned Planned purchase
C. Supply-base optimization
D. Supplier scorecard
24: the overall costs associated with purchasing like transporting, handling and inspecting etc is known as
A. Total cost of ownership (TCO)
B. Planned Planned purchase
C. Supply-base optimization
D. Supplier scorecard
25: Which of the following is not a key element of supplier management process?
A. Strategic sourcing
B. Purchasing
C. Supplier risk management
D. Quality control
26: ______ is a purchase order used for long-term purchases made on multiple delivery dates scheduled over a period of time.
A. Standard purchase order
B. Planned purchase order
C. Blanket purchase order
D. Supplier scorecard
27: ______ is the process of allowing interested suppliers to review a company’s RFP or RFQ electronically and submitting a bid for the job.
A. Negotiation
B. Bargaining surplus
C. Competitive bidding
D. Buyback contract
28: Supply chain ______ is important because approximately 50% of all energy and carbon emissions for a company are related to its supply chain.
A. Sustainability
B. Strategy
C. Management
D. Competitiveness
29: Gathering ______ from geographically dispersed supplier organizations is time-consuming and expensive.
A. Critical information
B. Goods and services
C. IT infrastructure
D. Capabilities
30: Service risk management and ______ management are two key components in managing service providers.
A. Cost
B. Relationship
C. Process
D. Quality
31: A ______ means determining the best number of suppliers to purchase from.
A. Single-sourcing strategy
B. Supply-base optimization
C. Multiple sourcing strategy
D. Sourcing strategy
32: ______ is a process in which a buyer and supplier bargain on the contractual terms of a purchase, such as its price, payment terms, and delivery.
A. Negotiation
B. Bargaining surplus
C. Competitive bidding
D. Buyback contract
33: ______ is a form that contains measures used to evaluate the performance of suppliers.
A. Standard purchase order
B. Buyback contract
C. Spend analysis
D. Supplier scorecard
34: ______ is any difference in value to be gained between the buyer and the supplier.
A. Negotiation
B. Bargaining surplus
C. Competitive bidding
D. Buyback contract
35: ______ is any difference in value to be gained between the buyer and the supplier.
A. Negotiation
B. Bargaining surplus
C. Competitive bidding
D. Buyback contract
36: ______ is a purchase order for purchases to be made on approximate dates at specified quantities when inventories run low.
A. Standard purchase order
B. Planned purchase order
C. Blanket purchase order
D. Supplier scorecard
37: ______ stems from fluctuations in demand and inventory levels.
A. Demand risk
B. Implementation risk
C. Market risk
D. Strategy risk
38: ______ is a subset of supplier relationship management.
A. Supplier performance management
B. Supplier risk management
C. Quality control
D. Supplier strategy
39: ______ expenses incurred from purchasing the supplies used to make products.
A. Cost of goods sold
B. Total cost of ownership
C. Cost of poor quality
D. Spend analysis
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Supplier Management MCQs
