CIM CIM Procurement & Purchasing Management

Question 1

What is a blanket purchase order?

Accepted Answer

A long-term agreement to purchase goods at set prices over a period

Answer

A single large shipment order

Answer

An emergency order for critical stock replenishment

Answer

An order placed without prior price negotiation

Question 2

In procurement, 'lead time' refers to:

Accepted Answer

The elapsed time from placing an order until goods are received

Answer

The cost incurred when placing a purchase order

Answer

The time required to process a supplier invoice

Answer

The duration of an active supplier contract

Question 3

The primary purpose of a Request for Quotation (RFQ) is to:

Accepted Answer

Invite suppliers to submit competitive pricing for specified goods

Answer

Notify suppliers of an upcoming payment

Answer

Cancel an existing purchase order

Answer

Confirm that received goods match specifications

Question 4

What is 'single sourcing' as a procurement strategy?

Accepted Answer

Deliberately choosing one preferred supplier to build a strategic partnership

Answer

Using one supplier because no alternatives exist in the market

Answer

Purchasing all items from the cheapest available supplier

Answer

Buying all product categories from one distributor

Question 5

Total Cost of Ownership (TCO) in supplier evaluation considers:

Accepted Answer

Purchase price plus all associated lifecycle costs

Answer

Only the unit purchase price quoted by the supplier

Answer

Only inbound transportation and freight charges

Answer

Only the supplier's quality inspection pass rates

Question 6

A purchase order (PO) is best described as:

Accepted Answer

A legally binding document authorizing a supplier to deliver specified goods at agreed terms

Answer

A request asking the supplier for a price quote

Answer

A supplier-issued invoice requesting payment

Answer

A document confirming goods have been received and inspected