Supply Chain Management Procurement 4

Question 1

What is 'reverse logistics' in the context of procurement and supply chain?

Accepted Answer

Managing the return of goods from customers back through the supply chain

Answer

Reverse logistics covers processes for handling product returns, recycling, refurbishing, or disposal after products reach the end customer.

Question 2

Which of the following best describes 'strategic sourcing'?

Accepted Answer

A systematic process of analyzing spend and supply markets to improve value

Answer

Strategic sourcing is a disciplined approach that analyzes total spend and supply markets to develop sourcing strategies that maximize value.

Question 3

In procurement negotiations, what does BATNA stand for?

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

BATNA is your best alternative if current negotiations fail—knowing it gives you leverage and helps you decide when to walk away.

Question 4

What is the primary purpose of supplier audits in procurement?

Accepted Answer

To verify that suppliers meet quality, compliance, and performance standards

Answer

Supplier audits assess whether a vendor's processes, quality systems, and practices conform to contractual and regulatory requirements.

Question 5

Which procurement tool allows buyers to drive prices down through competitive real-time bidding by multiple suppliers?

Accepted Answer

Reverse auction

Answer

In a reverse auction, multiple suppliers compete in real time by lowering their prices, with the buyer awarding the contract to the lowest qualified bidder.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Procurement 4