K180-pro - Procurement Reports - Product Knowledge

28 Questions | Total Attempts: 62

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K180-pro - Procurement Reports - Product Knowledge

Please complete the following self-assessment quiz - Test your own knowledge but if necessary please refer back to the training materials, manuals and/or other relevant resources to complete the questions


Questions and Answers
  • 1. 
    Which definition below best describes the calculation of the percentage figure used for the 3-year price recent trend?
    • A. 

      The lowest annual growth rate or decline over the 3 year period

    • B. 

      The average annual growth rate or decline over the 3 year period

    • C. 

      The highest annual growth rate or decline over the 3 year period

  • 2. 
    A recent price trend for a product that is calculated as 5% over the past 3 years (CAGR) is considered good for the buyer. True or False?
    • A. 

      True

    • B. 

      False

  • 3. 
    The Price Fundamentals section includes a summary table list 3 key pricing elements that are discussed in greater detail in this section. Which options below are the 3 elements?
    • A. 

      Average Price (or Benchmark Price)

    • B. 

      Price Range

    • C. 

      Price Volatility

    • D. 

      Key Pricing Factors

    • E. 

      Price Forecast

  • 4. 
    Below are examples of potential Input Cost Drivers and External Demand Drivers that could appear in the Catering Services report. Check mark all of the Input Cost Drivers, and leave the External Demand Drivers blank.
    • A. 

      Consumer Spending

    • B. 

      Average wages - Caterers

    • C. 

      The price of red meat

    • D. 

      Number of Businesses

    • E. 

      Corporate Profit

  • 5. 
    If the Recent Price Volatility is measured as LOW for a product, then this is good for the buyer. True or False?
    • A. 

      True

    • B. 

      False

  • 6. 
    Profit, Wages, Purchases and Overheads are all listed in the Cost Structure table - Which category would "depreciation costs" be listed under?
    • A. 

      Profit

    • B. 

      Wages

    • C. 

      Purchases

    • D. 

      Overheads

  • 7. 
    What stage of a product's life cycle is generally a greater risk for the Buyer; a product that is in the "Growth" stage or a product that is in the "Mature" stage of its life cycle?
    • A. 

      Growth

    • B. 

      Mature

  • 8. 
    The Life Cycle stage of a product impacts 4 key factors; select the factors that are affected and discussed within the section of the report.
    • A. 

      Pricing Trend

    • B. 

      Total Cost of Ownership

    • C. 

      Product/Technology Changes

    • D. 

      Marketing Trends

    • E. 

      Distribution Scope

    • F. 

      Negotiation Questions

  • 9. 
    If a product has a "High" Total Cost of Ownership, then which statement is true?
    • A. 

      The TCO as a percentage of the benchmark price per year is at least 100%

    • B. 

      The TCO as a percentage of the benchmark price per year is at least 200%

    • C. 

      The TCO as a percentage of the benchmark price per year is at least 50%

  • 10. 
    If the Product Specialization for a product is measured as HIGH then generally this is positive for the buyer. True or False?
    • A. 

      True

    • B. 

      False

  • 11. 
    The products listed below are considered either a "Related Good" or a "Substitute Good" for Business Card Printing Services. Mark all that would be considered a "Related Good".
    • A. 

      Stationary

    • B. 

      Office Supplies

    • C. 

      Digital Business Cards

    • D. 

      Business Card Printing Software

    • E. 

      Printed Marketing Material

  • 12. 
    If the Substitute Goods for a product is measured as HIGH then generally this is positive for the Buyer. True or False?
    • A. 

      True

    • B. 

      False

  • 13. 
    A product that is undergoing a lot of regulation change is generally good for buyers. True or False?
    • A. 

      True

    • B. 

      False

  • 14. 
    A product's industry that has not had any regulation changes for the last 3 years (or any expected changes for the next three years) is generally good for buyers. True or False?
    • A. 

      True

    • B. 

      False

  • 15. 
    Which of the following attributes would not be discussed as a Key Quality Factor?
    • A. 

      Accuracy

    • B. 

      Reliability

    • C. 

      Price

    • D. 

      Level of Service

  • 16. 
    The Imports section of our reports is typically only relevant for services, not products. True or False?
    • A. 

      True

    • B. 

      False

  • 17. 
    If the market share concentration for a particular industry is measured as HIGH, then what percentage of market share do the TOP 4 players in the market hold?
    • A. 

      Less than 35%

    • B. 

      At least 35%

    • C. 

      50% or greater

    • D. 

      Less than 50%

  • 18. 
    In the Vendor Statistic table the "Financial Risk Level" for each supplier (where available) is given as High, Medium or Low; the measure reflects a company's risk of bankruptcy over the next two years. What is the name of the standard measuring tool used to help measure this risk?
    • A. 

      Moody's Investors Service's ratings

    • B. 

      D&B Viability Rating

    • C. 

      Altman Z-Score

  • 19. 
    Market Profitability is measured as High, Medium or Low for a given product or service. Buyers reading this section should be able to gain the following insight except for one statement; which statement is not true?
    • A. 

      What is the average profitability for the relevant suppliers?

    • B. 

      What is driving profitability for suppliers of this product?

    • C. 

      Where do mark-ups occur in the supply chain?

    • D. 

      What is the % weighting for each key profit driver?

  • 20. 
    The higher the switching costs, the more leverage the Supplier has. True or False?
    • A. 

      True

    • B. 

      False

  • 21. 
    Buying Lead Time is measured in terms of Short, Medium and Long and is the time that the Buyer can typically anticipate between the RFP creation and what?
    • A. 

      The beginning of negotiations

    • B. 

      Final supplier selection

    • C. 

      Delivery or Implementation

    • D. 

      The end of a product's lifespan or the completion of a service contract

  • 22. 
    Which is NOT one of the three types of Selection Processes that exists for indirect purchases within an organization?
    • A. 

      Centralized

    • B. 

      Decentralized

    • C. 

      Institutionalized

    • D. 

      Mixed

  • 23. 
    The Buying-Decision Scorecard assigns weightings across what two categories?
    • A. 

      Technical Factors

    • B. 

      Quality Factors

    • C. 

      Cost Factors

    • D. 

      Supplier Size

  • 24. 
    The Buyer Power Score is a calculation based on weighted quantitative and qualitative factors. Which of the following statements about the weightings attributed to the following components of the Buyer Power Score is correct.
    • A. 

      Price Trend 40% - Market Structure – 30% - Market Risk 30%

    • B. 

      Price Trend 50% - Market Structure – 30% - Market Risk 20%

    • C. 

      Price Trend 50% - Market Structure – 20% - Market Risk 30%

    • D. 

      Price Trend 40% - Market Structure – 40% - Market Risk 20%

  • 25. 
    The following are the Buyer Power Score factors. Each major BPS component is categorized under one of the following: Buyer Price Trend, Market Structure or Market Risk. Check all of the factors that fall under the Buyer Price Trend.
    • A. 

      Vendor Financial Risk

    • B. 

      Price Driver Volatility

    • C. 

      Switching Costs

    • D. 

      Recent Price Trend

    • E. 

      Recent Price Volatility

    • F. 

      Availability of Substitutes

    • G. 

      Forecast Price

    • H. 

      Product Specialization

    • I. 

      Market Share Concentration

    • J. 

      Supply Chain Risk

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