1. Which one of the following describes the beginning and the end of a supply chain?

A. It begins when the buyer receives purchased materials and ends when the final
consumer uses finished goods
B. A. It begins when the buyer receives purchased materials and ends when the buyer
sells finished goods to the immediate customer
C. It begins when unprocessed materials are extracted or created and ends when the final
consumer uses finished goods
D. It begins when unprocessed materials are extracted or created and ends when they are
delivered to the buyer

2. Which one of the following describes the activities involved in physical distribution?
A. Activities that take place as part of the flow of materials into the production process and
the flow of finished goods to the customer
B. Activities that take place as part of the flow of finished goods from production to the
customer
C. Activities that take place as part of unloading, moving, packaging and storing supplies
D. Activities that take place as part of the transportation and delivery of finished goods

3. Which one of the following terms describes the process of planning, implementing and
controlling the efficient, effective flow and storage of raw materials, in-process inventory,
finished goods, services and related information from point of origin to point of
consumption?
A. Materials management
B. Physical distribution
C. Procurement
D. Logistics

4. Which one of the following procurement and supply professionals is responsible for the day
to day management of the relationship with suppliers?
A. Supplier manager
B. Contracts manager
C. Procurement manager
D. Expediter

5. Which of the following is an advantage of a centralised procurement function?

A. It supports easier communication between procurement and users
B. Buyers can respond quickly to users needs
C. Buyers have a better understanding of users needs
D. It facilitates standardisation of procedures

6. Which one of the following definitions best describes value money?

A. Difference between the benefits obtained from an activity and its cost
B. Making savings in costs
C. Difference between the revenue obtained from an activity and its cost
D. Improving quality for no extra cost

7. Company z produces car seats for Auto Makers, a car manufacturing company. Company Z
obtains materials for its car seats from a cloth manufacturer, company Y. Company Y obtains
 cotton for making cloth from a cotton supplier, company X. In this supply chain, which of
these companies is a tier 2 supplier to Auto Makers?
A. Company Z only
B. Company Y only
C. Company X and Y
D. Company X only

8. Which one of the following is an internal customer of the procurement function in a

company that manufactures frozen food products?
A. Supermarkets that sell the companys products
B. Employees of the company who buy its products
C. The production department making the products
D. A media company advertising the companys products

9. A strategic approach to achieving efficient and integrated operations across the entire
supply chain is known as?
A. Adding value
B. Tiering the supply chain
C. Globalisation of the supply chain
D. Supply chain management

10. Which one of the following is a measure of the effectiveness of procurement?

A. The use of information technology
B. The number of procurement staff
C. Lower purchase prices without any reduction in quality
D. The cost of procurement staff

11. A buyer in a retail organisation is quoted a price of P10 per unit for an order of 100 units of
an item, and a discount of P2 per unit for an order of 200 units. The retail price for the item
is P20 per unit. The buyer purchases 200 units, of which 125 are sold at the full retail price
and the remaining units are scrapped. What has been the effect on the buying organisations
profits from the decision to buy 200 units, compared to the alternative of buying just 100
units?
A. Profit is P120 lower
B. Profit is P100 lower
C. Profit is P200 higher
D. Profit is P250 higher

12. Which one of the following best describes the fives Rs of procurement?
A. The appropriate quantity of goods of the right quality delivered to the correct place at
the correct time for the lowest possible price
B. The appropriate quantity of goods of the right quality delivered to the correct place at
the correct time for a reasonable, fair, competitive and affordable price
C. The quantity of the right quality goods to meet anticipated demand delivered to the
correct place at the correct time for a reasonable, fair, competitive and affordable price
D. The appropriate quantity of goods of the right quality delivered to the correct place as
soon as possible for a reasonable, fair, competitive and affordable price
13. Buying goods at the lowest price available consistent with ensuring the right quality,
quantity, timing and delivery of the purchased items, is known as obtaining?
A. Procurement objectives
B. Trade offs between the five rights
C. The right price
D. Value for money

14. Which one of the following is the most likely consequence for a manufacturing company of
failing to receive delivery of purchased items at the right (expected) time?
A. Production bottlenecks
B. Damage to goods in transit
C. Excess purchase ordering quantities
D. Rejection of purchased items on inspection

15. What are direct supplies?

A. Items bought directly from the original manufacturer
B. Items that form part of the end product of the buying organisation
C. Items delivered to a buying organisation under a just in time procurement arrangement
D. Items requisitioned by a user department direct from the supplier

16. Why do business organisations use external suppliers?

A. To sastisfy customers
B. To keep operating costs down
C. For closer control over the supply chain
D. Because they lack sufficient resources to do everything themselves

17. Which one of the following best describes the ideal activity to be outsourced?
A. An activity which is a core competence and for which there are highly competent
external suppliers
B. An activity which is not a core competence and for which there are highly competent
external suppliers
C. An activity for which there are highly competent external suppliers
D. An activity which is not a core competence and for which there are low cost external
suppliers

18. Which one of the following explains the purpose of a specification?

A. Prepared by the buyer, it details the buyers requirements in terms of what the relevant
product should consist of or what it should achieve
B. Prepared by the buyer, it details exactly the number of items the buyer requires, where
they should be delivered to, when they should be delivered and the price the buyer is
willing to pay
C. Prepared by the seller, it details what the sellers product consists of or what it can
achieve
D. Prepared by the seller, it details the product’s fitness for purpose

19. The full set of intermediaries, such as wholesalers and retailers, used in delivering goods
from a manufacturer to consumers is known as?
 A. The downstream supply chain
B. The upstream supply chain
C. The internal supply chain
D. A distribution channel

20. In a contract for the provision of services, the contractual specifications for the frequency
and timing for the service delivery, and the numbers and skills of the people providing the
service, are known as?
A. Service standardisation
B. The service level agreement
C. The process specification
D. The customer service requirement

21. Which one of the following explains the specific characteristic of blanket ordering?
A. The buyer sets up a framework agreement and when necessary calls off his
requirements and asks the supplier to deliver in accordance with the framework
agreement
B. The buyer sets up a framework agreement that specifies the total quantities that will be
called off and then, when necessary, calls off his requirements and asks the supplier to
deliver in accordance with the framework agreement
C. The buyer sets up a long term framework agreement for a large group of items and
when necessary calls off his requirements and asks the supplier to deliver in accordance
with the framework agreement
D. The buyer sets up framework agreements with individual suppliers for as many separate
items as possible to minimise the supplier base

22. Which one of the following describes a situation in which competitive tendering is
appropriate?
A. There are very few potential suppliers in the market
B. A number of buyers are keen to secure a particular supplier
C. Changes to the specification are unlikely as the contract progresses
D. There is limited time available and a decision is needed relatively quickly

23. The process of reaching an acceptable agreement between a buying organisation and a
supplier, to include all aspects of the purchase transaction, is known as?
A. Competitive pricing
B. Supplier selection
C. Relationship building
D. Negotiation

24. Which one of the following explains the activities required prior to passing a copy of a goods
received note to the procurement department?
A. Buyer orders the goods, buyer pays for the goods, buyer receives the goods
B. Buyer notifies seller of the content of the required items and the time of delivery, seller
sends an order acknowledgment, buyer and seller negotiate the price, buyer receives
the goods
C. Buyer orders the goods, seller raises an invoice, buyer pays the invoice, buyer receives
the goods
 D. Buyer orders the goods, seller notifies buyer of the content and time of delivery, buyer
receives the goods, buyer checks the goods

25. Before approving the payment of a suppliers invoice, a person in the procurement function
should check that the suppliers invoice details correspond
with_________________________________________________________________
A. The purchase order and the delivery note
B. The purchase order and the goods received note
C. The delivery note and goods received note
D. The purchase order and agreed credit terms

26. A good expediting system should reduce problems arising from?

A. Late deliveries
B. Unclear purchase specifications
C. Unsatisfactory quality of goods
D. Late ordering

27. Which one of the following is needed to create a binding agreement between a buyer and a
supplier?
A. Administration
B. A contract
C. Negotiation
D. A specification

28. Which one of the following must be formally authorised before a purchase order can be
prepared and placed?
A. Service level agreement
B. Approved supplier list
C. Purchase requisition
D. Request for quotation

29. As a general rule, in a contract tendering process for a large or complex supply contract, the
tender that is most likely to succeed is the one that?
A. Is the most economically advantageous tender
B. Meets the buyers specifications
C. Is the first to be received
D. Is the lowest priced tender

30. An award notification letter sent to unsuccessful bidders for a supply contract should
contain?
A. Details of the successful bid
B. Reasons why the unsuccessful bid failed
C. Reasons why the successful bid was accepted
D. Grounds for challenging the decision

31. For a suppliers invoice for the supply of goods to be

approved____________________________________________________________________
A. The invoice must be received with the delivery of the goods
 B. The invoice must be signed by the supplier
C. The invoice details must match those in the purchase requisition
D. The invoice details must match those on the purchase order and goods received note

32. Who should formally approve the payment of a suppliers purchase invoice?
A. The procurement officer who placed the order
B. The person who raised the original purchase requisition
C. It depends on the size or amount of the invoice
D. The accounts officer who processes the invoice

33. Ethics in procurement and supply can relate to?

A. Value for money
B. Customers
C. Pricing
D. Sourcing

34. The system of rules, practices and procedures by which a company is directed and controlled
is known as its?
A. Corporate governance
B. Operating guidelines
C. Code of ethics
D. Budget

35. According to the CIPS code of Conduct, in which of the following ways should CIPS members
enhance the proficiency and stature of the profession?
A. By fostering awareness of human rights
B. By continually developing their knowledge to increase personal skills
C. By not accepting inducements and gifts
D. By never using their authority or position for personal gain

36. According to the CIPS code of Conduct, in which of the following ways should CIPS members
promote the eradication of business practices?
A. By fostering awareness of human rights, fraud and corruption issues in all their business
relationships
B. By continually developing their knowledge to increase personal skills
C. By not accepting inducements and gifts
D. By never using their authority or position for personal gain

37. According to the CIPS code of Conduct, in which of the following ways should CIPS members
enhance and protect the standing of the profession?
A. By fostering awareness of human rights
B. By continually developing their knowledge to increase personal skills
C. By not accepting inducements and gifts
D. By never using their authority or position for personal gain

38. According to the CIPS code of Conduct, in which of the following ways should CIPS members
maintain the highest standard of integrity in all their business relationships?
A. By fostering awareness of human rights
 B. By continually developing their knowledge to increase personal skills
C. By not accepting inducements and gifts
D. By never using their authority or position for personal gain

39. Contract administration is concerned with?

A. Establishing service level agreements between buyer and supplier
B. The implementation of procedures, by buyers and suppliers, to ensure that contract
obligations are fulfilled
C. Maintaining communications between buyer and supplier
D. Drawing up the detailed formal contract of supply between a buyer and supplier

40. A building contractor undertakes to construct a number of houses for a property

development company. It uses an external supplier to provide and fit the doors and
windows for the houses. The use by the construction company of the external supplier of
windows and doors is best described as a?
A. Outsourcing
B. Insourcing
C. A service contract
D. Subcontracting

41. An example of direct supplies for a buying organisation is the purchase of?
A. Food products by a restaurant
B. Tools by a car repairs and maintenance company
C. Office cleaning services by a property rental company
D. Outsourced cloud computing services by an accountancy firm

42. Unlike products, most services cannot be held in store by the purchaser until they are
required. This gives rise to potential problems for the supplier of services with?
A. Scheduling the provision of the service to customers
B. Inspecting the quality of service provision
C. Establishing the ownership of a service
D. Uncertainties about service contract agreements

43. Which one of the following is an example of a consumer product?

A. Railway train
B. Aeroplane
C. Car
D. Helicopter

44. Which one of the following is an example of a consumer service?

A. Construction of a motorway
B. Development of new medicine
C. Fire fighting service
D. Subscription television service

45. In the process of selecting suppliers for a purchased item, narrowing down the number of
possible suppliers from a longer list of potential supplier to a shortlist is known as?
A. Surveying the market
 B. Sourcing the market
C. Supplier approval
D. Supplier audit

46. A competitive bidding process between a shortlist of prequalified suppliers is known as?
A. Selective tendering
B. Requests for quotation
C. Open tendering
D. An invitation to tender

47. Spot buying means buying easily specified goods____________________________________

A. To meet the immediate need, at a price that has previously been agreed
B. To meet an immediate need, at a price that is currently available in the market
C. To meet a future need, at a price that has previously been agreed
D. To meet a future need, at a price that is currently available in the market

48. Ordering goods from a preselected supplier under a framework agreement, in a number of
separate purchase orders and at a pre agreed price, or a price that can be established by a
pre agreed formula, is known as?
A. Spot buying
B. Partnership sourcing
C. A fixed contract
D. Blanket ordering

49. When a supplier delivers goods to a buying organisation, in fulfilment of a purchase order,
which one of the following documents does the supplier submit in advance to the buying
organisation to notify the time and the content of the delivery?
A. Order acknowledgement
B. Delivery note
C. Advice note
D. Invoice

50. There may be a discrepancy with a purchase order delivery, between the quantity ordered,
the quantity shown in the delivery note and the physical quantity of items received. In which
one of the following circumstances is it appropriate for the buying organisation to book the
units received into stock, rather than isolate the goods until the discrepancy is resolved?
A. Situation A: 100 ordered, 70 on delivery note, 70 actually received
B. Situation B: 100 ordered, 100 on delivery note, 70 actually received
C. Situation C: 100 ordered, 100 on delivery note, 120 actually received
D. Situation B: 100 ordered, 70 on delivery note, 120 actually received

51. An advantage of having a shortlist of prequalified suppliers when requesting quotations for a
contract to supply goods is?
A. Ensuring the lowest price for the contract
B. Ensuring the best quality for the goods delivered
C. Limiting the number of RFQs issued
D. Ensuring prompt delivery of the goods
52. One of the purposes of establishing key performance indicators for a supply contract is to
identify when the performance of the contract is not up to requirement
and____________________________________________________________________
A. Discuss the problem with the supplier
B. Initiate legal action against the supply
C. Give the contract to a different supplier
D. Re negotiate the terms in the contract

53. The principle that the same person should not place a purchase order, approve payment and
make the payment is known as?
A. Corporate governance
B. Separation of duties
C. Delegated authority
D. Ethical practice

54. An item in the companys code of ethics that relates to ethical behaviour by the company
itself might be?
A. Prompt payment of suppliers
B. Competition between suppliers
C. The use of child labour
D. Supplier appraisal

55. Which one of the following measures might be used by an organization to measure the
quality of service it receives from a company providing IT maintenance services?
A. The cost of the IT services provided
B. The ability to provide service to multiple locations
C. The speed of response to requests for service
D. The number of maintenance jobs carried out

56. Which one of the following is NOT an advantage to be obtained from the strategic
outsourcing of a service?
A. To gain access to skills or resources that the organization is unable to acquire and retain
itself
B. To overcome capacity limitations with internal resources and operations
C. To improve control over service standards
D. To allow the organization to focus on its own core competencies

57. A service level agreement for the provision of a repair service for elevators should
specify_______________________________
A. The speed of response by the supplier to call-out from the customer
B. The level of courtesy expected from the supplier
C. The risks faced by the customer
D. How hard the supplier will work

58. Many services, such as telecommunications, are provided by the supplier and used by the
customer at the same time. This feature of a service is known as its________________
A. Variability
B. Perishability
 C. Inseparability
D. Intangibility

59. When a buyer uses call-off contracts under a framework agreement to buy items from a
supplier, the framework agreement__________________________________________
A. Specifies the total quantity of the item to be purchased over the term of the agreement,
and the price or a pricing formula
B. Does not specify the total quantity of the item to be purchased over the term of the
agreement, but specifies the price or a pricing formula
C. Specifies the total quantity of the item to be purchased over the term of the agreement,
but does not specify the price or a pricing formula
D. Does not specify the total quantity of the item to be purchased over the term of the
agreement, and does not specify the price or a pricing formula

60. Which one of the following statements is correct?

A. Expediting is a value added activity in which the buying organization may use its track
and trace system
B. Expediting is a non-value added activity in which the buying organization may use its
track and trace system
C. Expediting is a value added activity in which the buying organization may use the
suppliers track and trace system
D. Expediting is a non-value added activity in which the buying organization may use the
suppliers track and trace system

61. The operation of routine and clerical functions within a procurement department is known
as departmental
A. Administration
B. Expediting
C. Supply chain management
D. Buying

62. For large and complex supply contracts, a buying organization is likely to issue
A. RFQs
B. RFPs
C. ITTs
D. RFIs

63. What is the purpose of an order acknowledgement?

A. For a supplier to acknowledge receipt of an award letter
B. For a supplier to acknowledge receipt of a purchase order
C. For a buyer to confirm that a supplier’s bid has been successful
D. For a buyer to acknowledge that a purchase order has been placed

64. The purpose of a delivery note is__________________________________________

A. For the buyer to acknowledge that goods have been delivered by the supplier
B. For the supplier to acknowledge receipt of the purchase order
C. For the supplier to notify the buyer in advance of the delivery time for an order
D. For the supplier to specify the goods that have been delivered
65. Individuals made to work for an employer on harsh terms in order to give personal security
against a loan are known as
A. Child labour
B. Bonded labour
C. Exploitative labour
D. Human traffic

66. ISO 26000 regulates the _______________________________aspect

A. Testing and collaboration
B. Social responsibility
C. Anti bribery management
D. Risk management

67. ISO 31000 regulates the _______________________________aspect

A. Testing and collaboration
B. Social responsibility
C. Anti bribery management
D. Risk management

68. ISO 17025 regulates the _______________________________aspect

A. Testing and collaboration
B. Social responsibility
C. Anti bribery management
D. Risk management

69. ISO 37001 regulates the _______________________________aspect

A. Testing and collaboration
B. Social responsibility
C. Anti bribery management
D. Risk management

70. ISO 22000 regulates the _______________________________aspect

A. Medical devices
B. Food safety management
C. Occupational Health and Safety
D. Energy management

71. ISO 5001 regulates the _______________________________aspect

A. Medical devices
B. Food safety management
C. Occupational Health and Safety
D. Energy management

72. ISO 13485 regulates the _______________________________aspect

A. Medical devices
B. Food safety management
C. Occupational Health and Safety
D. Energy management