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1 Which of the following is not likely to be a primary activity of Local Procurement office
established in the overseas geography?
Identification of customers for company’s products
Market research for identification of new suppliers
Evaluate suppliers for necessary qualification
Performing inspections for getting assurance of suppliers

2 In the international procurement, the purchase orders cannot be placed on Overseas

Sourcing agent who can place the same on supplier.
True
False

3 Which of the following is not likely to be an important objective of a global

procurement function such key objective?
Lowest costs
Tax evasion
Best quality
Efficiency in supply chain

4 Ketan, a new joiner at TFY Limited is conducting a study to identify some of the
important aspects of global procurement functions. You are required to assist him
identify and eliminate the incorrect aspect he has captured?
Centralized procurement strategy
Focus on economies of scale
Decentralized procurement strategy
Corporate wide standardization and benchmarking

5 __________________ is most likely to be an important driving factor for establishment

of a global procurement function
 Political influences
Infrastructure of respective geographies
Currency
All of the above

6 Which of the following is least likely to be an important objective of the global

procurement function?
Least cost and best quality
Promotion of transparency, ethics and compliances in the procurement activity
Procurement always from proximate and local vendors
Innovation and Efficiency in procurement

7 Harpreet, Head of Procurement at TFR Limited is concerned with incorrect application

of cost management principles in the organization related to Global Procurement
Activity. Help him to identify the most important criteria, which he should focus on?
Comparing various options with local
Location of vendor holding company
Lowest Total cost of Procurement
Vendor Name

8 One of the important objectives of the global purchasing manager is to scout for new
vendors so that the total cost of procurement at the consumption location is Lowest
True
False

9 TFR Limited has initiated a project across all key Function in the Global Procurement
Department to eliminate the inefficiencies in order to manage the costs better. You are
required to recommend the suitable action for the company?
Consideration of current economic situation
Increase of non-value added activities in procurement cycle
Need for innovation
Value addition
10 Which of the following processes any multinational enterprise is most likely to
outsource to a low cost manufacturing country?
Design
Research and Development
Core activities
Non-core activities

11 Ensuring ____________ culture is firmly established in the global procurement

function is one of the key responsibility of the Global Sourcing Manager
Cost enhancement
Innovation
Efficiency reduction
All of the above

12 Gagan, Head of Supply Chain at TGY Limited has entered into a contract with a
global supplier for the key procurement needs in new geographies. While his team has
listed down the key objectives, help him to identify the incorrect one?
Exploring additional business opportunities
Enhanced options on marketing and distribution side of the business
Business development
Increasedlanded cost of procurement

CH-2

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1 Which of the following is least likely to be an important feature of concept of Total Cost
of Ownership (TCO)?
 Considers the lifecycle costs of the equipment or goods
Considers the purchasing and transportation costs
Evaluates the overall cash outgo over the benefits to be realized
Considers full costs instead on only purchase costs

2 Which of the following costs will not be considered while computing the total cost of
ownership in the procurement of technology?
Downtime, outage and failure expenses
Backup and recovery expenses
Future upgrade and scalability expenses
None of the above

3 Amit, a new joiner in Supply Chain Function at TFY Limited is conducted a detailed
study on the concept to Total Cost of Ownership (TCO). While he has listed the key
components of logistics and transportation costs, help him to identify and eliminate the
least likely one?
Inventory holding
Customs charges
Basic purchase price of the material
Handling and packaging

4 In the process of transportation which of the costs related to combining small shipments
to form larger shipments and often results into overall cost reduction for the shipper?
Freight charge
Transfer fees
Consolidation fee
Pick-up and delivery

5 ______________ is most likely to be an important component of the inventory holding

costs in the supply chain
Pipeline Holding
Safety Stock
Both 1 and 2
 None of the above

6 Administration costs in the supply chain will include__________

Order processing
Communication
Other overheads
All of the above

7 Geeta, Head of Logistics is developing an estimated of the Customs and the Clearance
charges for the imported shipments. She has developed the budget. Help her identify the
type of costs that needs to be excluded from the budget.
Customs feed
Freight charges
Brokerage fee
Allocation fee per house bill

8 Chetan, Head of Procurement at FRT Limited is evaluating various options to ensure

that the tax incentives are effectively managed. He is exploring various actions and you
are required to identify the least suitable action in the interest of the company?
Identification, quantification and management framework for incentives
Outsource the incentive management activity being non-core to the business
Centralize the activities related to management of incentives
Periodically evaluate the benefits available

9 With respect to Service Tax in India negative lists consists of__________

International Services
Non-Taxable services
Taxable Services
Local Services

CH-3
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1 Which of the following is not an activity for strategic sourcing process?

Category management for purchases
Disintegration of suppliers
Generation of supplier portfolio
Integration of suppliers

2 Jitendra, Head of Procurement, at TYG Limited looking establishment of criteria for

evaluation of vendors on aspects. Which of the following is least likely to be considered as
an important aspect for evaluation?
Spend in terms of dollar amounts
Bank Account number of the Vendor
Location of vendor
Number of users

3 Need Analysis for procurement is an important step in strategic purchasing. Which of

the following is most likely to be an important activity involved?
Interview with the current users
Seeking user’s views on the supplier’s performance
Both 1 and 2
none of the above

4 ___________is most likely to be an important component of the supplier analysis in the

procurement function
Value chain
Suppliers cost structures
Pricing
All of the above
5 Kirti, a new joiner in Global Sourcing at TFR Limited understands the Porter’s five
forces model for analyzing the supplier portfolio. Help her to identify the aspect that
needs to be eliminated from the analysis?
Evaluate bargaining power of the suppliers
Understand the bargaining power of buyer
Understand the threat of new entrants
Implications of rivalry among the direct competitors of buyer in the market

6 Which of the following is not a broad category position as per the category positioning
matrix for selecting appropriate sourcing strategy?
Leverage
Operational
Strategic
Non-Critical

7 As per the Category positioning matrix for sourcing product, _________ is not a Non-
Critical characteristic
Low expenditure levels
Competitive market
Small % of expenditure
Not key to the core business

8 Which of the following is least likely to be a Volume Concentration Strategy which

involves consolidation of the suppliers?
Renegotiation of prices
Consolidate number of suppliers
Aggregate volume across units
Re-distribute volume among suppliers

9 Chintan, Head of Purchases at TFR Limited is keen to understand the application of the
Best Price Evaluation Strategy which involves focus of the organization to achieve best
possible pricing for the desired product or service. He has listed the key aspects and you
are required to assist him to eliminate the aspects that are not applicable?
Aggregate volume across units
 Comparison of Total costs
Renegotiation prices
Unbundle pricing

10 ____________is not likely to be an important strategy for exploring multiple sources of

procurement
Expand geographic supply base
Unbundle pricing
Develop new suppliers
Exploit global supply / demand imbalances

11 Which of the following is least likely to be an important benefit for an organization in

the process of generation of supplier portfolio?
Availability of robust database
Ease in sending enquiries
Increase in the prospective supplier numbers to unmanageable levels
Ease in seeking quotations

12 It is not possible for the small or new suppliers to offer more favorable contract terms
that some of the large suppliers.
True
False

13 Identify the least likely the feature of Request for Quotation Process in the supplier
identification and selection process.
Standard process across the globe
Requesting and obtaining multiple quotes
Sent generally to a single supplier
Subject to budget as defined by the management

CH-4

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1 Sheetal, Head of HR has listed down the internal duties of the global purchasing
manager in an organization. Which of the duties she should exclude as it is not part of
internal duties?
Collaboration with the internal network
Effective management of supplier relationships
Making operating purchasing decisions
Definition of purchasing strategies

2 Periodic evaluation, monitoring and development of the suppliers areexternal duty of

the global purchasing manager.
True
False

3 Which of the following trend is not likely to affect the evolving role of a global sourcing
manager in the 21st century?
Continual effort towards rationalization of number of suppliers
Decreasing the strategic role of purchasing in corporate policy
Shift towards centralized control
Focus over entering into long term contrac

4 ________________ is not likely to be core responsibility of a Corporate Buyer reporting

to the Corporate Procurement Officer
Managing purchases of strategic commodities
Focus on long range procurement planning horizon
Development of organization wide purchasing strategies
Responsible for developing sourcing strategy for key commodities

5 Bhargav, Head of Purchase has just taken over as a Materials Manager and Planner at
TFR Limited. Help him identify the activity which he is now not supposed to be
responsible for.
Involvement in material planning and ordering
 Overall guidance to various buyers with respect to procurement strategy
Order handling
Vendor rating with regard to quality and delivery performance

6 Spend Management Analysis does not provide information related to total number of
one-off and small value transaction based suppliers
True
False

7 Simplifying or standardizing the product and service specification is one of the methods
to achieve cost reduction in the procurement space.
True
False

8 The Procurement Function at TFR Limited is considered to be passive on the maturity

scale. The Head of Function is keen to enhance the maturity and seeks your assistance to
identify the least likelyattribute of a passive procurement function.
Lack of strategic direction
Deployment of latest purchasing techniques and practices
Function as a reaction on requests for other departments
Selection of supplier purely based on price

9 Limited amount of inter-functional communication is an attribute of _____________

type of procurement Function as per the maturity model.
Integrative
Passive
Supportive
Independent

10 Under Supportive Type of Procurement Function, the representatives from the

Purchasing team not part of the sales or proposal team.
True
False
11 ABC Limited is looking at appointment of Chief Procurement Officer. The company
has listed down the key responsibilities the CPO is expected to carry. Identify the
responsibilities that are least likely to be part of the role of the CPO.
Guarantee low cost purchase at the cost of quality at all times
Achieving financial objectives through cost reduction
Re-engineer the business process
Satisfy the needs of delivery time

12 __________is least likely to be an important interpersonal skill relevant for the Chief
Procurement Officer
Networking
Developing relationship and engagement
Influencing Skills
Introvert

CH-5

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1 Amit, Head of Logistics is keen to consider various aspects, that can impact the type of
packaging required for the product in international supply chain?
Dimensions, weights and center of gravity
Sensitivity of cargo to external conditions
Base surface area of the product
All of the above

2 __________ is least likely to be use of the software in the procurement function for
evaluating packaging requirements.
Calculation of the loading volume
 Price to be quoted to the customers and cash discount
Optimizing the positioning of the packages
Optimizing the construction of packages

3 Which of the following is an inappropriate packaging guideline in the international

supply chain?
Do not use cargo liners for obnoxious cargo such as hides and carbon black
Do not load goods in a container with damaged packaging
Do not stow wet and damp goods with dry goods
Do not stow heavy goods on the top of light goods

4 Which of the following is third level of packaging of the product?

Primary
Secondary
Tertiary
Additional Packaging

5 ______________is not likely to be an important objective of proper packaging in global

sourcing
Reduction in damages and product losses
Reduction of the market value of the product
Balancing transportation and packaging costs
Enhancement of customer satisfaction

6 Which of the following type of packaging consist of intermediate levels and essential in
the global sourcing space
Primary
Secondary
Tertiary
Additional Packaging
CH-6

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1 In ________ the logistics service providers are owners of the truck and warehouses
First party logistics (1PL)
Second party logistics (2PL)
Third party logistics (3PL)
Fourth party logistics (4PL)

2 Amit, Head of Purchasing is keen to understand the important aspect of international

logistics in the global procurement. Which of the following is least likely to be an
important feature of international logistics?
Multiple and bundled Services
Little amount of complexity involved
Cross docking
Customs clearances across international border

3 ____________ is least likely to be an important challenge involved in managing

procurement and global logistics?
Long geographical distance
Transactions mostly in home currency
Engagement of foreign intermediaries
Exposure to foreign exchange

4 For exportersreceiving payments from customer’s overseas in foreign currency the key
risk involved is_______
Depreciation of the rupee
Appreciation of the rupee
Both 1 and 2
none of the above
5 Which of the following is not an intermediary involved in the international logistics
under the global supply chain space?
Import/ Export Agents
Brokers
Local Truck Owners
Import/export Merchants

6 Which of the following type of product is notlikely to be transported by Sea Freight?

Oil
Medical Equipment
Steel
Coal

7 Chetan, a new joiner at Logistics at RFT Limited is keen to understand the documents
thatare issued by the freight forwarder for individual shipment for separate consignee
under the overall consolidation. Help him to identify the appropriate one.
Airway Bill
Master Airway Bill
Bill of Exchange
House Airway Bill

8 Which of the following is not likely to be an important feature of INCO Terms?

Use of INCO Terms constitute contract
Accepted rules and definitions in International Trade
Cannot override local country regulations
Cannot override terms of the sales contract

CH-7

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1 Which of the following is not likely to be an important KPIs with respect to the
Procurement Value?
Sourcing return on Investment
Spend per employee
Market Share of the Company
Savings per employee

2 Kirti, Head of Purchases is keen to establish criteria for evaluation of the supplier
performance in an organization. He has listed down several criterion and you are
required to identify and eliminate the inappropriate one
Quality of products
Family Structure of the owner of supplier entity
On-time delivery of the products
Supplier Innovation

3 __________ are most likely to be effective means to evaluate the supplier performance
Periodic Supplier Audits
Supplier Registration documentation
Supplier Invoice
Supplier Location details

4 Which of the following is least likely to be considered as an appropriate global

procurement sourcing Key Performance Indicator?
Spend Value with Bottom 10 Suppliers
% of addressable spend
Annualized Savings
Spend Value with Top 10 suppliers