CLA Procurement & Strategic Sourcing 3

Question 1

Which negotiation approach focuses on creating value for both buyer and supplier rather than dividing a fixed resource?

Accepted Answer

Integrative (win-win) negotiation

Answer

Distributive (win-lose) negotiation

Answer

Competitive bidding

Answer

Price-only negotiation

Question 2

A contract clause specifying that prices will adjust based on changes in a commodity index is called a:

Accepted Answer

Price escalation/de-escalation clause

Answer

Force majeure clause

Answer

Indemnification clause

Answer

Liquidated damages clause

Question 3

Supplier development programs are designed to:

Accepted Answer

Improve a supplier's capabilities, quality, or delivery performance to meet buyer requirements

Answer

Replace underperforming suppliers with new ones immediately

Answer

Eliminate all single-source supply relationships

Answer

Standardize packaging across all suppliers

Question 4

Which payment term gives a buyer a discount for early payment?

Accepted Answer

2/10 net 30

Answer

FOB destination

Answer

Net 60

Answer

COD (cash on delivery)

Question 5

A reverse auction in e-procurement is characterized by:

Accepted Answer

Multiple suppliers competing in real time by lowering their bids to win a buyer's business

Answer

A single supplier setting prices for a long-term agreement

Answer

Buyers competing to purchase limited supply from one seller

Answer

A sealed-bid process with no real-time visibility

Question 6

The Kraljic Matrix classifies purchased items by profit impact and supply risk primarily to:

Accepted Answer

Determine the appropriate procurement strategy for each spend category

Answer

Calculate safety stock levels for each SKU

Answer

Rank suppliers by on-time delivery performance

Answer

Identify which products to discontinue