SCMN 3730 EXAM 2 NEWEST ACTUAL EXAM
COMPLETE 84 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+
Agent - ✔✔ANSW✔✔..person or group
representing company
Bottleneck - ✔✔ANSW✔✔..Annual Spend - Low
Supply Risk - High
Must have it, no leverage available
Complex specifications
Minimal supply alternatives
Major impact on operations
Introduce new technology
Coercive - ✔✔ANSW✔✔..Coercive: Ability to
punish; repeated use will damage relationship or
invite retaliation; relates to holder's belief that
another party will comply
,Compare and contrast a tactical vs. strategic
methodology to implementing procurement cost
savings - ✔✔ANSW✔✔..-Tactical = single
company focused on supply chain cost reduction
efforts (reduce total landed cost)
-Strategic = integrative approach focused on
improving costs throughout supply chain (reduce
total cost of ownership; get everyone to reduce your
costs)
Compare and contrast TCO to Total Landed Cost
(TLC) concept. - ✔✔ANSW✔✔..Acquisition costs
are TLC costs, TCO includes ownership and post-
ownership
Construction Contract -
✔✔ANSW✔✔..construction contract often results in
lengthy bid process
Consulting Contract - ✔✔ANSW✔✔..consulting
services contracts define the consultant as an agent
for the organization; not employee
, Contrast/compare business objectives vs. business
goals. How are these applied to procurement
processes? - ✔✔ANSW✔✔..-Objectives: open
ended, relative measurement terms, broad terms,
external focus
-Goals: time phased, specific/measurable, particular
result, internal focus
Cost Plus Fixed Fee - ✔✔ANSW✔✔..Supplier
receives reimbursement for all allowable COSTS
plus a fixed fee for services (typically % of cost)
Cost Plus Incentive Fee - ✔✔ANSW✔✔..Supplier
COST is the sum of allowable expenses plus
generated savings which are shared between the
buyer and supplier calculated on predetermined rate
Cost Sharing - ✔✔ANSW✔✔..Allowable supplier
COSTS shared between buyer and seller on
predetermined % basis; may include productivity
improvement goals
COMPLETE 84 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+
Agent - ✔✔ANSW✔✔..person or group
representing company
Bottleneck - ✔✔ANSW✔✔..Annual Spend - Low
Supply Risk - High
Must have it, no leverage available
Complex specifications
Minimal supply alternatives
Major impact on operations
Introduce new technology
Coercive - ✔✔ANSW✔✔..Coercive: Ability to
punish; repeated use will damage relationship or
invite retaliation; relates to holder's belief that
another party will comply
,Compare and contrast a tactical vs. strategic
methodology to implementing procurement cost
savings - ✔✔ANSW✔✔..-Tactical = single
company focused on supply chain cost reduction
efforts (reduce total landed cost)
-Strategic = integrative approach focused on
improving costs throughout supply chain (reduce
total cost of ownership; get everyone to reduce your
costs)
Compare and contrast TCO to Total Landed Cost
(TLC) concept. - ✔✔ANSW✔✔..Acquisition costs
are TLC costs, TCO includes ownership and post-
ownership
Construction Contract -
✔✔ANSW✔✔..construction contract often results in
lengthy bid process
Consulting Contract - ✔✔ANSW✔✔..consulting
services contracts define the consultant as an agent
for the organization; not employee
, Contrast/compare business objectives vs. business
goals. How are these applied to procurement
processes? - ✔✔ANSW✔✔..-Objectives: open
ended, relative measurement terms, broad terms,
external focus
-Goals: time phased, specific/measurable, particular
result, internal focus
Cost Plus Fixed Fee - ✔✔ANSW✔✔..Supplier
receives reimbursement for all allowable COSTS
plus a fixed fee for services (typically % of cost)
Cost Plus Incentive Fee - ✔✔ANSW✔✔..Supplier
COST is the sum of allowable expenses plus
generated savings which are shared between the
buyer and supplier calculated on predetermined rate
Cost Sharing - ✔✔ANSW✔✔..Allowable supplier
COSTS shared between buyer and seller on
predetermined % basis; may include productivity
improvement goals
