SCM 4350 EXAM 1 QUESTIONS & ANSWERS
1. Describe a typical common practice used in traditional purchasing.- Answer -
Awarding contracts to fewer suppliers based on the lowest price via competitive bidding.
2. Which factor does progressive purchasing prioritize?- Answer - Building long-term
relationships with suppliers by evaluating their performance and capabilities.
3. What are the tactical roles in purchasing?- Answer - Involves day-to-day operations such as
invoicing, contract and PO prep, and requisitioning.
4. Key aspects of strategic roles in purchasing include- Answer - - Answer - long-term
planning, supplier rela- tionship management, P2P involvement and category strategies.
5. Management types that are included within strategic roles include- Answer - Cost,
demand, contract, supplier relationship
6. What does P2P stand for in purchasing?- Answer - Procure-to-Pay.
7. RFI purpose- Answer - used to gather information about suppliers and their capabilities.
8. What is the purpose of an RFP?- Answer - used to solicit proposals from suppliers for specific projects or
services.
9. What do RFPs need to have?- Answer - Custom requirements, detailed proposals that evaluate supplier
expertise and overall value
10. What does VUCA stand for?- Answer - Volatility, Uncertainty, Complexity, and Ambiguity.
11. Challenges that volatility in VUCA represent- Answer - - Answer - Rapid and unpredictable
changes
12. Describe the environment characterized by complexity within the VUCA
framework.- Answer - Interconnected variables that make SCM harder to manage
13. Uncertainty in the VUCA framework describes which condition related to future
events and information?- Answer - The Inability to predict the future and its changes
14. What does ambiguity refer to in the VUCA framework?- Answer - Cause and ettect being
unclear.
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, 15. List some factors contributing to uncertainty in supply chains?- Answer - Natural
disasters,
government industrial policy, material shortages, and labor strikes.
16. Explain the protective measure afforded by using more than one supplier.- Answer - -
Improves assurance of supply and allows for better negotiation through active competition.
17. Why would a company choose to use a single supplier?- Answer - Optimum leverage and
power
18. State the primary operational benefit realized by concentrating all purchases with one
vendor.- Answer - Limits the ability to negotiate, and are usually selected due to having unique properties.
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1. Describe a typical common practice used in traditional purchasing.- Answer -
Awarding contracts to fewer suppliers based on the lowest price via competitive bidding.
2. Which factor does progressive purchasing prioritize?- Answer - Building long-term
relationships with suppliers by evaluating their performance and capabilities.
3. What are the tactical roles in purchasing?- Answer - Involves day-to-day operations such as
invoicing, contract and PO prep, and requisitioning.
4. Key aspects of strategic roles in purchasing include- Answer - - Answer - long-term
planning, supplier rela- tionship management, P2P involvement and category strategies.
5. Management types that are included within strategic roles include- Answer - Cost,
demand, contract, supplier relationship
6. What does P2P stand for in purchasing?- Answer - Procure-to-Pay.
7. RFI purpose- Answer - used to gather information about suppliers and their capabilities.
8. What is the purpose of an RFP?- Answer - used to solicit proposals from suppliers for specific projects or
services.
9. What do RFPs need to have?- Answer - Custom requirements, detailed proposals that evaluate supplier
expertise and overall value
10. What does VUCA stand for?- Answer - Volatility, Uncertainty, Complexity, and Ambiguity.
11. Challenges that volatility in VUCA represent- Answer - - Answer - Rapid and unpredictable
changes
12. Describe the environment characterized by complexity within the VUCA
framework.- Answer - Interconnected variables that make SCM harder to manage
13. Uncertainty in the VUCA framework describes which condition related to future
events and information?- Answer - The Inability to predict the future and its changes
14. What does ambiguity refer to in the VUCA framework?- Answer - Cause and ettect being
unclear.
1/8
, 15. List some factors contributing to uncertainty in supply chains?- Answer - Natural
disasters,
government industrial policy, material shortages, and labor strikes.
16. Explain the protective measure afforded by using more than one supplier.- Answer - -
Improves assurance of supply and allows for better negotiation through active competition.
17. Why would a company choose to use a single supplier?- Answer - Optimum leverage and
power
18. State the primary operational benefit realized by concentrating all purchases with one
vendor.- Answer - Limits the ability to negotiate, and are usually selected due to having unique properties.
2/8
