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NEW QUESTION 48
Which of the following are possible drivers for partnership sourcing? Select THREE.

• A. The need to improve performance to satisfy the end customer
• B. The protection of intellectual property rights
• C. Working together will create synergies
• D. The marketplace has become more volatile

Answer: A,C,D

Explanation:
To increase production costs and lead-times
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers of Partnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won't protect intellectual property rights- in fact that's one of the big risks of entering into a partnership. Partnerships won't increase costs and lead-times, they're likely to decrease them.

NEW QUESTION 49
Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce. Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?

• A. Bottleneck
• B. leverage
• C. routine
• D. strategic

Answer: C

Explanation:
Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business' operations (a late delivery of pens isn't going to stop the company making its biscuits). There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix (see p.20)

NEW QUESTION 50
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.

• A. suppliers are selling differentiated products
• B. competition is at its highest level possible
• C. there are no barriers to entry
• D. competition is not strong

Answer: B,C

Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40

NEW QUESTION 51
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