A buyer compares three suppliers based on price, quality history and risk exposure. This demonstrates:

Here are the answers to your questions:

9. When a buyer compares suppliers based on multiple criteria like price, quality history, and risk exposure, they are conducting a systematic and comprehensive assessment.

   • B. Structured evaluation

10. A significant increase in a supplier's defect rate indicates a decline in performance that needs to be formally addressed and investigated.

    • B. Conduct performance review

11. The decision of whether to produce a component internally ("make") or purchase it from an external supplier ("buy") is a fundamental strategic choice known as make-or-buy analysis.

    • A. Make-or-buy analysis

12. A framework agreement is a long-term contract that sets out terms and conditions for future purchases, making it ideal for needs that are not constant but occur repeatedly over time.

    • A. You have irregular but recurring requirements

13. To manage decreasing delivery reliability, a buyer should use Key Performance Indicators (KPIs) to track and measure this specific aspect of supplier performance, allowing for early identification and management of issues.

    • A. KPI monitoring

14. Dual sourcing involves using two suppliers for the same item, which primarily reduces the risk of supply disruption if one supplier experiences issues.

    • A. Supply disruption

15. An ethical procurement breach includes actions that compromise fairness, transparency, and integrity. Disclosing confidential bids to other bidders is a clear example.

    • A. Disclosing confidential bids

16. To achieve a balanced outcome when one supplier offers timeliness and another offers quality, a strategy that leverages both while managing their weaknesses is best. Dual sourcing with KPIs allows for this.

    • C. Develop a dual sourcing strategy with KPIs

17. Total Cost of Ownership (TCO) is a comprehensive calculation that includes the initial purchase price plus all associated costs over the entire lifecycle of the product or service, such as maintenance, operating costs, and disposal.

    • C. Purchase price + all lifecycle costs including maintenance

18. Awarding a contract based on personal preference rather than objective evaluation criteria introduces bias and undermines fairness, representing an ethical risk.

    • B. Ethical risk

19. When late supplier deliveries cause production delays, the most effective corrective action is to work collaboratively with the supplier to identify root causes and implement solutions.

    • B. Develop supplier improvement plan

20. Repeated supplier price increases require a thorough understanding of all costs associated with that supplier over time. A Total Cost of Ownership (TCO) review helps analyse the true financial impact.

    • A. Supplier TCO review

21. If a company outsources IT support but fails to monitor Service Level Agreement (SLA) compliance, it risks not receiving the agreed-upon level of service, which is a service performance risk.

    • B. Service performance risk