Procurement : Final Quiz PDF

### **Procurement : Final Quiz** ### ### **Part 1 : Matching the Right Pair (Case-Based)** **Instructions:** Match each scenario with the most appropriate term or action. Write the number of the case next to the corresponding letter in the answer column. **Terms or Actions:**\ a. Service Level...

### **Procurement : Final Quiz** ### ### **Part 1 : Matching the Right Pair (Case-Based)** **Instructions:** Match each scenario with the most appropriate term or action. Write the number of the case next to the corresponding letter in the answer column. **Terms or Actions:**\ a. Service Level Agreement (SLA)\ b. Global Sourcing\ c. Category Management\ d. Risk Mitigation\ e. E-procurement **Scenarios:** 1. **Sally** is managing a critical IT support contract. She ensures the agreement specifies the expected service levels, including response time and uptime guarantees, to avoid misunderstandings. 2. **Alex** is expanding his company's supplier base to include vendors from multiple countries. He considers exchange rates, logistics, and cultural differences while making his decisions. 3. **Maya** uses a structured framework to organize procurement activities by categories such as office supplies, raw materials, and IT services to streamline spending and reduce costs. 4. **Tom** identifies that relying on a single supplier for raw materials is risky. He decides to use multiple suppliers to reduce the chances of supply disruptions. 5. **Linda** implements a software tool to automate purchase orders, invoicing, and supplier management, reducing errors and paperwork. **Answer Column:**\ 1 - \_\_\_\_\_\ 2 - \_\_\_\_\_\ 3 - \_\_\_\_\_\ 4 - \_\_\_\_\_\ 5 - \_\_\_ **Part 2: True or False (Case-Based)** **Instructions:** Indicate whether the following statements are **True** or **False** based on the scenarios provided. Mark your answer with a ✓. **Category Sourcing (Chapter 5)** 1. Sally, a procurement manager, decides to focus only on upfront cost savings when sourcing new suppliers. This approach aligns with the principles of category management.\ ☐ True ☐ False 2. Alex prioritizes sourcing high-impact categories that align with company goals. This is an effective way to maximize strategic value.\ ☐ True ☐ False 3. Maya ignores the total cost of ownership while negotiating with suppliers, leading to unexpected expenses later. Her strategy aligns with category management principles.\ ☐ True ☐ False **Sourcing Business Services (Chapter 6)** 4. James drafts a Service Level Agreement (SLA) that specifies only the price and delivery deadlines. This ensures clear expectations for both parties.\ ☐ True ☐ False 5. Linda involves stakeholders in defining the scope of a cleaning service contract. This helps align service specifications with company needs.\ ☐ True ☐ False 6. Tom uses the same procurement strategy for purchasing goods and services. This approach effectively addresses the unique challenges of service procurement.\ ☐ True ☐ False **Contract Management (Chapter 7)** 7. Amy drafts a contract with clear terms and conditions, reducing the risk of disputes with her supplier. This is a best practice in contract management.\ ☐ True ☐ False 8. Ben believes performance tracking after signing a contract is unnecessary because the terms are already agreed upon. His approach ensures successful outcomes.\ ☐ True ☐ False 9. Sarah tailors contracts to meet specific business needs and risk profiles. This approach supports effective contract management.\ ☐ True ☐ False **Risk Management in Procurement (Chapter 8)** 10. Kevin diversifies his suppliers to reduce the risk of disruptions in the supply chain. This is a valid risk mitigation strategy.\ ☐ True ☐ False 11. Ella performs a one-time risk assessment at the start of procurement and assumes risks won't change. This approach effectively manages risks.\ ☐ True ☐ False 12. Raj ignores potential geopolitical risks when sourcing internationally, assuming they won't impact the supply chain. This ensures a reliable procurement process.\ ☐ True ☐ False **Global Sourcing (Chapter 9)** 13. Sophia believes global sourcing is less complex than local sourcing and requires minimal planning. Her belief reflects the reality of global procurement.\ ☐ True ☐ False 14. Chris ensures compliance with international trade regulations when sourcing abroad. This is critical for a successful global procurement strategy.\ ☐ True ☐ False 15. Olivia focuses solely on cost savings in her global sourcing strategy, ignoring other potential benefits like quality improvement. Her strategy aligns with best practices.\ ☐ True ☐ False **Technology in Procurement (Chapter 10)** 16. Noah implements an e-procurement system to automate manual processes, improving efficiency. His approach aligns with modern procurement practices.\ ☐ True ☐ False 17. Emma uses data analytics to identify trends in supplier performance and spending patterns. This enables better decision-making.\ ☐ True ☐ False 18. Liam avoids introducing e-procurement due to team resistance, opting to stick with manual methods. His decision improves long-term procurement efficiency.\ ☐ True ☐ False **General Concepts from Chapters 5--10** 19. Rachel aligns her procurement strategies with broader business goals, ensuring strategic impact. This is an example of effective procurement.\ ☐ True ☐ False 20. Michael prioritizes strong relationships with suppliers over drafting detailed contracts, believing trust is sufficient. This approach guarantees successful outcomes.\ ☐ True ☐ False 21. Ava assumes her risk management strategies will prevent all disruptions in the supply chain. This is a realistic expectation.\ ☐ True ☐ False 22. Lucas conducts regular reviews of procurement processes to enhance efficiency and adapt to changing needs. This is a recommended practice.\ ☐ True ☐ False 23. Emily believes adopting technology in procurement eliminates all challenges, making it a flawless process. Her belief aligns with best practices.\ ☐ True ☐ False 24. Jason focuses on building strong supplier relationships to reduce long-term procurement risks. This strategy supports sustainable procurement.\ ☐ True ☐ False 25. Hannah implements transparency across all procurement activities, leading to better decision-making and trust. This aligns with strategic procurement goals.\ ☐ True ☐ False **Part 3: Case** **Case: Minions and the Banana Supply Chain Crisis** Gru has asked the Minions to build a "Banana Smoothie Empire" to fund his next plan. The Minions are small, yellow, and mischievous creatures who love bananas. The team includes: - **Kevin**: The leader, responsible and takes charge. - **Stuart**: Playful, loves music, and has a relaxed attitude. - **Bob**: Innocent and loves his teddy bear, Tim. **Why Bananas Are Important:**\ Bananas are not just a favorite food of the Minions---they are the key ingredient for their entire business. If bananas are not available, the Banana Smoothie Empire cannot operate, which means Gru's next big plan will fail. Bananas also represent the Minions' passion, so ensuring a stable banana supply is critical to both business success and team morale.\ **Key Business Logic for Students to Apply:** 1. Without bananas, the smoothie production stops. 2. A reliable supply chain ensures uninterrupted operations and customer satisfaction. 3. Managing costs and quality for bananas directly affects profitability. **Challenges:** 1. **Banana Shortages**: Their supplier, "Banana Bliss Co.," can't meet demand. 2. **Confusing Contracts**: Stuart signed unclear contracts, causing delays and bad quality. 3. **Tech Trouble**: Bob suggests using a smoothie machine app, but the team finds it too complicated. 4. **Risky Business**: Without backup suppliers, the Minions risk running out of bananas. **Quiz Exercise** **Chapter 5: Category Sourcing** **Fill-in-the-Blanks Exercise:** 1. The Minions can apply category management by grouping banana procurement into \_\_\_\_\_\_\_ (specific categories, e.g., bulk suppliers or organic farms). 2. This strategy helps in \_\_\_\_\_\_\_ (prioritizing/organizing) procurement activities to optimize \_\_\_\_\_\_\_ (cost/quality). 3. To stabilize supply, Kevin should first focus on securing \_\_\_\_\_\_\_ (high-volume/premium) suppliers. **Critical Thinking Questions:** 1. How can the Minions group their banana suppliers to make buying bananas easier? 2. If one supplier sends many bananas at a low price, and another sends better quality but costs more, which one should the Minions choose first? Why? **Chapter 6: Service Sourcing** **Fill-in-the-Blanks Exercise:** 1. When picking a company for smoothie machines, the Minions should check \_\_\_\_\_\_\_ (reliability/price). 2. It is important to have clear agreements with the company about \_\_\_\_\_\_\_ (repair timelines/payment terms). **Critical Thinking Questions:** 1. What should the Minions check when picking a company for smoothie machines? 2. Why is it important for the Minions to write down clear rules with the smoothie machine company? **Chapter 7: Contract Management** **Fill-in-the-Blanks Exercise:** 1. Stuart's mistake was signing a contract with unclear \_\_\_\_\_\_\_ (terms/costs). 2. The supplier contract should include \_\_\_\_\_\_\_ (delivery deadlines/flexible timelines) to avoid delays and \_\_\_\_\_\_\_ (quality standards/price reductions) to ensure banana quality. **Critical Thinking Questions:** 1. What should the Minions write in their banana supplier contract to avoid late deliveries? 2. Why should the Minions include penalties in their supplier contracts? **Chapter 8: Risk Management** **Fill-in-the-Blanks Exercise:** 1. To avoid running out of bananas, the Minions should \_\_\_\_\_\_\_ (diversify suppliers/rely on one supplier). 2. The Minions can keep extra bananas in a \_\_\_\_\_\_\_ (stockroom/temperature-controlled vault). **Critical Thinking Questions:** 1. What can the Minions do if their main banana supplier stops sending bananas? 2. Why is it risky for the Minions to buy bananas from only one supplier? **Chapter 9: Global Sourcing** **Fill-in-the-Blanks Exercise:** 1. If the Minions buy bananas from another country, they may face \_\_\_\_\_\_\_ (shipping delays/faster delivery). 2. To follow international rules, the Minions should focus on \_\_\_\_\_\_\_ (trade compliance/supplier convenience). **Critical Thinking Questions:** 1. What problems might the Minions face when buying bananas from another country? 2. How can the Minions follow international rules when buying bananas from other countries? **Chapter 10: Technology in Procurement** **Fill-in-the-Blanks Exercise:** 1. Bob's app can help the Minions by \_\_\_\_\_\_\_ (tracking banana orders/creating smoothie recipes). 2. The Minions could use other tools like \_\_\_\_\_\_\_ (automated ordering/manual record-keeping) to improve their processes. **Critical Thinking Questions:** 1. How can Bob's app help the Minions track their banana orders? 2. What other technology could the Minions use to save time and avoid mistakes?