Question 1

Which of the following are potential advantages of adopting centralised procurement system? Select TWO that apply

Options :

A : Inefficient use of procurement skills

B : Economies of scale available

C : Less bureaucratic environment

D : More scope for personal responsibility

E : Less administrative work

Answer: A,B

Question 2

When might a company send a Request for Information (RFI) instead of a Request for Quotation (RFQ)? (Select TWO)

Options :

A : To obtain indicative prices that could be offered for a range of required products

B : To negotiate the payment terms detailed in the terms and conditions of sale

C : To ask for details of the product or range of services that the supplier has to offer

D : To establish the details of environmental and quality certificates that the supplier may have

E : To determine whether the supplier can fulfil a purchase order already placed

Answer: A,C,D

Question 3

Roberto is running a tender in which his main concern is price. However he is keen to hear also about the companies' Corporate Social Responsibility Policies and how this will impact their delivery. Roberto is considering awarding the CSR question 4 points in a weighted point system. If he does this, what weight should be given to the price?

Options :

A : 4

B : 5

C : 8

D : 96

Answer: D

Question 4

Which of the following Incoterms has the lowest risk for the supplier?

Options :

A : ex works

B : delivered at terminal

C : free on board

D : delivered duty paid

Answer: A

Question 5

According to OJEU approaches, when will a public organisation have to adopt restricted process?

Options :

A : When procurement function assumes that number of bids will be limited

B : When procurement function doesn't know how exactly the specification should be

C : When procurement function expects there to be large potential supplier base

D : When procurement function has loose selection requirements that are imposed to bidders

Answer: C

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