Question

What of the following may best describe the key driver for buyers?

	a.	Buyers should be professional.
	b.	Buyers should be ‘service-driven’.
	c.	Buyers should be aggressive negotiators.
	d.	Buyers should be objective.

Service Level Agreement (SLA) payments to suppliers are commonly based on which of the following?

	a.	Actual performance versus targeted performance.
	b.	Number of complaints.
	c.	Targeted performance.
	d.	Actual performance.

Which of the following could be a consequence of competence problems and friction between the buyer and other departments?

	a.	A lack of transparency in purchasing decisions.
	b.	Overspending on supplies.
	c.	Internal departments may prefer to deal directly with the supplier.
	d.	Outsourcing.

Which of the following characteristics is a quadrant in the purchasing portfolio approach (Kraljic Portfolio)?

	a.	Frequency of use.
	b.	Price.
	c.	Leverage products.
	d.	Availability.

Which of the following factors will not be stressed by buyers when purchasing services?

	a.	Cost savings potential.
	b.	Subjectivity
	c.	Fair price.
	d.	Clear contractual relationships.

Answer 1

1) C

The buyer must be able to negotiate well to get best possible price for a product or service

2) A

In SLA, payments are made basis the terms in agreement which defines the target performance and compared with actual performance

3) D

In there is a friction between buyer and other departments, it may result in outsourcing as in purchase is made from the outside

4) C

They are the items with high profit impact and low risk in supply