CIM CIM Procurement & Purchasing Management 1

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 blanket purchase order is a pre-negotiated framework agreement that allows multiple delivery releases over a defined period at agreed prices and terms.

Question 2

In procurement, 'lead time' refers to:

Accepted Answer

The elapsed time from placing an order until goods are received

Answer

Lead time encompasses all elapsed time from purchase order placement through supplier fulfillment and physical receipt at the buyer's facility.

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

An RFQ is a formal solicitation document sent to potential suppliers requesting pricing, terms, and delivery details for specified items or services.

Question 4

What is 'single sourcing' as a procurement strategy?

Accepted Answer

Deliberately choosing one preferred supplier to build a strategic partnership

Answer

Single sourcing is a deliberate choice to use one supplier for an item to develop deeper collaboration, volume leverage, and partnership benefits.

Question 5

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

Accepted Answer

Purchase price plus all associated lifecycle costs

Answer

TCO captures the full cost of acquiring and using goods, including price, freight, inspection, quality failures, warranty, and disposal costs.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM CIM Procurement & Purchasing Management 1