1.What is procurement management?

a) The process of obtaining goods and services from external sources

b) The process of managing internal resources within an organization
c) The process of manufacturing goods and services
d) The process of marketing products to customers

2. Which of the following is not a primary objective of procurement management?

a) Ensuring timely delivery of goods and services

b) Reducing costs and achieving cost savings

c) Maximizing supplier profits

d) Ensuring quality and compliance

3.Which of the following is key benefit of effective procurement management?

a) Increased customer satisfaction

b) Reduced employee turnover

c) Higher sales revenue

d) Improved marketing campaigns

4. What is the role of a procurement manager?

a) To manage the production process within an organization

b) To negotiate contracts and agreements with suppliers

c) To oversee the sales and marketing activities of a company

d) To handle human resources and employee relations

5. Which of the following is an example of indirect procurement?

a) Purchasing raw materials for manufacturing

b) Buying office supplies and equipment

c) Acquiring machinery for production

d) Obtaining finished goods for resale

6. What is request for proposal (RFP) ?

a) A document that outlines the requirements for a specific project or procurement

b) A formal agreement between a buyer and a supplier

c) A list of potential suppliers for a procurement process

d) A legal contract for the purchase of good and services.

7. What is the purpose of supplier evaluation and selection?

a) To identify potential competitors in the market

b) To assess the financial performance of the procurement department

c) To choose the most suitable supplier based on predefined criteria

d) To negotiate prices and discounts with suppliers

8. What is contract management in procurement?

a) The process of terminating contracts with suppliers

b) The process of monitoring and managing contract performance

c) The process of drafting legal documents for procurement activities

d) The process of selecting suppliers for procurement projects

9. What is strategic sourcing

a) The process of identifying potential suppliers

b) The process of procuring goods and services on as needed basis

c) The process of aligning procurement decisions with overall business goals

d) The process of negotiating prices and terms with suppliers

10. What is the purpose of procurement ethics?

a) To ensure fair competition among suppliers

b) To maximize profitability for the procurement department

c) To establish strict rules and regulations for procurement activities

d) To promote transparent and integrity in procurement practices

11. Which of the following best defines procurement management?

a) The process of acquiring goods and services from external sources to meet organization
needs

b) The process of managing internal resources and assets within an organization

c) The process of optimizing production and manufacturing operation

d) The process of promoting and selling products to customers

12. Which of the following is a key objective of procurement management?

a) Maximize profits for suppliers

b) Minimizing competition among suppliers

c) Ensuring on-time delivery of goods and services

d) Maximizing internal resources allocation.

13. What is the role of a procurement manager?

a) Managing the production process within an organization

b) Negotiating contracts and agreements with suppliers

c) Overseeing the sales and marketing activities of a company

d) Handling human resources and employee relations

14. What is difference between procurement and purchasing?

a) Procurement focuses on strategic sourcing, while purchasing focuses on transactional

buying

b) Procurement refers to buying goods, while purchase refers to acquiring services.

c) Procurement is subset of purchasing within supply chain management

d) Procurement and purchasing are interchangeable terms with no significant differences

15. What is the main purpose of a request for proposal (RFP)?

a) To request suppliers to submit price quotations for goods and services

b) To evaluate and select the most suitable supplier for a specific project

c) To invite potential suppliers to bid on a procurement opportunity

d) To negotiate contractual terms and conditions with suppliers

16. What is the concept of total cost ownership (TCO) in procurement?

a) It includes all costs associated with acquiring and using a product or service over its
lifetime

b) It refers to the cost of acquiring goods and services from external sources

c) It represents the costs incurred in managing internal resources and assets

d) It is the sum of purchase price and transportation costs for goods

17. Which of the following is an example of a procurement risks.

a) Changes in customer preferences and demand

b) Fluctuating exchange rates and currency fluctuations

c) Internal conflicts within procurement team

d) Employee turnover and staffing issues

18. what is a purpose of supplier relationship management (SRM)?

a) To terminate contracts with underperforming suppliers

b) To maintain a database of potential suppliers for future procurement needs

c) To develop and strengthen relationships with key suppliers

d) To negotiate prices and terms with suppliers on an ongoing

19. What is the significance of sustainability in procurement management?

a) It focuses on reducing cost and archiving cost savings in procurement processes

b) It ensures ethical practices and compliance with legal regulation

c) It prioritizes the use of renewable resources and minimizing environmental impact

d) It involves streamlining procurement operations and maximizing efficiency

20. What is the purpose of procurement performance measurement?

a) To evaluate the financial performance of the procurement department

b) To assess the efficiency and effectiveness of procurement process

c) To compare price and quality among different suppliers

d) To negotiate favorable payment terms with suppliers

21. What is the primary objective of purchasing operations?

a) Minimize production costs

b) Maximize sales revenue

c) Optimize supply chain efficiency

d) Increase customer satisfaction

22. Which of the following is NOT a component of the purchasing process?

a) Vender selection

b) Contract negotiation

c) Inventory Management

d) Order fulfillment

23. Which of the following is advantage of centralized purchasing structure?

a) Faster decision-making process

b) Enhanced supplier relationships

c) Greater autonomy for individual department

d) Improved coordination across the organization

24. What is role of a purchasing manager?

a) Oversee Inventory management

b) Developing marketing strategies

c) Manage sales operations

d) Negotiate contacts with supplier

25. Which of the following is an example of a strategic purchasing decision?

a) Ordering office supplies

b) Selecting a long-term supplier

c) Determining order quantities

d) Receiving goods and inspecting them

26. What is the purpose of conducting a supplier evaluation?

a) Assess supplier performance

b) Determine product pricing

c) Establish quality standards

d) Identify market trends

27. What is the role of an expeditor in the purchasing process?

a) Negotiate prices with venders

b) Manage supplier relationship

c) Monitor order process and delivery

d) Analyze market trends and demand

28. Which of the following is an example of an e-procurement tool?

a) Request for Proposal (RFP)

b) Purchase order (PO)

c) Vender managed inventory (VMI)

d) Online auction platform

29. What is the purpose of conducting a cost analysis in purchasing operations?

a) Determine product quantity

b) Assess supplier reliability

c) Identify cost - saving opportunities

d) Monitor market demand

30. What does the term “Just in time” (JIT) refer to in the context of purchasing?

a) Ordering goods in bulk quantities

b) Storing excess inventory

c) Receiving goods immediately after ordering

d) Forecasting future demand accurately

31. Which of the following is NOT a primary objective of purchasing operation?

a) Minimizing procurement costs

b) Maximizing supplier profits.

c) Ensuring timely availability of materials

d) Obtaining quality goods and services

32. What is the primary purpose of a purchasing department within an organization?

a) Managing sales operation

b) Handling customer services inquiries

c) Negotiating contracts with suppliers

d) Monitoring employee performance

33. Which of the following is an example of direct purchasing items?

a) Office Stationary

b) Cleaning supplies

c) Raw materials for manufacturing

d) Employee training programs

34. What is role of procurement manager?

a) Analyzing market trends

b) Managing inventory level

c) Developing market strategies

d) Ensuring compliance with procurement policies

35. Which of the following is advantages of a decentralized purchasing structure?

a) Streamlined coordination and control

b) Economies of scale in procurement

c) Enhanced bargaining power with supplier

d) Reduced risk of maverick buying

36. What is the purpose of a request for proposal (RFP) in the purchasing process?

a) Sourcing bids from potential supplier

b) Negotiating pricing and terms with venders

c) Placing an order for goods or services

d) Tracking and managing supplier performance

37. What is main goal of strategic sourcing in purchasing operation?

a) Reducing supplier dependency

b) Minimizing transaction costs
c) Maximizing short-term saving
d) Establishing long-term supplier relationships

38. Which of the following is an example of a cost reduction strategy in purchasing?

a) Implementing vender – managed inventory (VMI)

B) Expanding the supplier base

c) Increasing order quantities

d) Using just-in-time (JIT) inventory management.

39. What does the term “supplier performance metrics” refer to in the context of
purchasing?

a) Key performance indicators (KPIs) for purchasing managers

b) Financial statements of suppliers

c) Evaluation criteria for selecting suppliers

d) Historical pricing data for purchased goods

40. Which of the following is a characteristics of a well-implemented supplier relationship

management (SRM) program?

a) Transactional focus on short term gains

b) Limited communication and long-term partnership with key suppliers

c) Mutual trust and long-term partnership with key suppliers

d) Ad hoc and reactive approach to supplier selection.

41. What is the purpose of conducting a spend analysis in purchasing operations?

a) Assessing supplier performance

b) Monitoring market trends and demand

c) Identifying cost-saving opportunities and optimizing procurement spend

d) Evaluating the quality of purchased goods.

42. Which of the following is an advantage of implementing electronic data interchange

(EDI) in purchasing operations?

a) Increased paperwork and manual processing

b) Enhanced visibility and accuracy of transaction data

c) Slower order processing and communication

d) Reduced reliance on technology and automation

43. What is the purpose of conducting a make or buy analysis in purchasing decisions?

a) Evaluating the financial stability of suppliers

b) Assessing the quality of in-house production

c) Determining whether to produce a component internally or outsource it

d) Analyzing market demand and customer preferences

44. Which of the following is an example of a purchasing performance matric?

a) Employee turnover rate

b) Customer satisfaction rating

c) On-time delivery performance

d) Sales revenue growth

45 What is the role of a purchasing contract in procurement operation?

a) Determining the specifications of purchased goods or services

b) Establishing a legal framework for buyer-supplier relationships
c) Monitoring supplier performance and enforcing compliance
d) Setting the price and payment terms for purchased items

46 Which of the following is a benefit of implementing a supplier diversity program in

purchasing?

a) Increase reliance on a single supplier for critical items

b) Limited competition and reduced bargaining power with suppliers
c) Enhanced Innovation and access to diverse markets
d) Lower quality and increased risk of non-compliance

47 What is the purpose of conducting a market analysis in purchasing operations?

a) Assessing supplier financial stability

b) Evaluating product quality and specification
c) Identifying potential suppliers and analyzing market trends
d) Monitoring employee performance in the purchasing department.

48. Which of the following is an example of a purchasing risk management strategy?

a) Selecting multiple suppliers for critical item

b) Placing small and frequent orders to minimize inventory holding costs

c) Relying on a single supplier for cost efficiency

d) Negotiating longer payment terms with supplier

49. What is the role of a purchase requisition in the purchasing process?

a) Authorizing the release of payment to suppliers

b) Requesting approval for purchasing orders

c) Tracking and monitoring supplier performance

d) Negotiating pricing and terms with venders

50 Which of the following is a primary objective of supplier sourcing registration and

evaluation

a) To increase the organizations market share.

b) To identify potential suppliers in the market.
c) To negotiate favorable pricing with existing suppliers
d) To assess and select suppliers based on their capabilities and performance.
1 a) The process of obtaining goods and services from external sources

2 c) Maximizing supplier profits

3 a) Increased customer satisfaction

4 b) To negotiate contracts and agreements with suppliers

5 b) Buying office supplies and equipment

6 a) A document that outlines the requirements for a specific project or procurement

7 c) To choose the most suitable supplier based on predefined criteria

8 b) The process of monitoring and managing contract performance

9 c) The process of aligning procurement decisions with overall business goals

10 d) To promote transparent and integrity in procurement practices

11 a) The process of acquiring goods and services from external sources to meet
organization needs

12 c) Ensuring on-time delivery of goods and services

13 b) Negotiating contracts and agreements with suppliers

14 a) Procurement focuses on strategic sourcing, while purchasing focuses on transactional

buying

15 c) To invite potential suppliers to bid on a procurement opportunity

16 a) It includes all costs associated with acquiring and using a product or service over its
lifetime

17 b) Fluctuating exchange rates and currency fluctuations

18 c) To develop and strengthen relationships with key suppliers

19 c) It prioritizes the use of renewable resources and minimizing environmental impact

20 b) To assess the efficiency and effectiveness of procurement process

21 c) Optimize supply chain efficiency

22 c) Inventory Management

23 d) Improved coordination across the organization

24 d) Negotiate contacts with supplier

25 b) Selecting a long-term supplier

26 a) Assess supplier performance

27 c) Monitor order process and delivery

28 d) Online auction platform

29 c) Identify cost - saving opportunities

30. c) Receiving goods immediately after ordering

31 b) Maximizing supplier profits.

32 c) Negotiating contracts with suppliers

33 c) Raw materials for manufacturing

34 d) Ensuring compliance with procurement policies

35 c) Enhanced bargaining power with supplier

36 a) Sourcing bids from potential supplier

37 d) Establishing long-term supplier relationships

38 a) Implementing vender – managed inventory (VMI)

39. a) Key performance indicators (KPIs) for purchasing managers

40 c) Mutual trust and long-term partnership with key suppliers

41. c) Identifying cost-saving opportunities and optimizing procurement spend

42 b) Enhanced visibility and accuracy of transaction data

43 c) Determining whether to produce a component internally or outsource it

44 c) On-time delivery performance

45 b) Establishing a legal framework for buyer-supplier relationships

46 c) Enhanced Innovation and access to diverse markets
47 c) Identifying potential suppliers and analyzing market trends

48 a) Selecting multiple suppliers for critical item

49 b) Requesting approval for purchasing orders

50 d) To assess and select suppliers based on their capabilities and performance