Question 1

A buyer in Housing Authority is considering using performance specification in upcoming social housing project. What should buyer be aware when using this type of specification?

Options :

A : The buyer must be able to clearly define the performance metrics to ensure that the offered solution will achieve the desired outcome

B : Using performance specification means that the buyer will bear all the risks regarding the fitness for purpose of the facility.

C : In performance specification, specific brands and preferred suppliers must be appointed to avoid the competition

D :

The buyer must be able to define the materials to be used, the execution and installation methods required and the specific design of the building

Answer: A

Question 2

A procurement manager is building a budget next year. She wants to use the budget to foster innovation. What kind of budget method should she use?

Options :

A : Incremental budget

B : Activity-based budget

C :

Value preposition budget

D : Zero-based budget

Answer: D

Question 3

Given that Wilkinson Ltd operates in a market where customers are highly budget-conscious, what is the likely implication for the bargaining power of suppliers and buyers?

Options :

A : Suppliers’ bargaining power will increase, while buyers’ bargaining power will decrease.

B : There will be no significant change in the bargaining power of either suppliers or buyers.

C : Both suppliers’ and buyers’ bargaining power will decrease.

D : Suppliers’ bargaining power will decrease, while buyers’ bargaining power will increase.

Answer: D

Question 4

In Kano model, which of the following types of requirement should be excluded from the product or service?

Options :

A : Reverse requirements

B : Attractive requirements

C : Must-be requirements

D : Performance requirements

Answer: A

Question 5

A CPO is analyzing whole life cycle costing of a machinery. He considers cost variables that are not specific but come from a range of values. Which whole-life costing model should the CPO use to get the most accurate total cost of ownership?

Options :

A : Decision support models

B : Simulation models

C : Optimisation models

D : Kraljic-s preferencing model

Answer: B

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