Q1. Which of the following is NOT one of the “five rights” of procurement?

Question 1

Answer · 2026-09-17T21:53:08.896Z

Here are the answers to your questions: Q1. Which of the following is NOT one of the “five rights” of procurement? The "five rights" of procurement typically refer to Right Quality, Right Quantity, Right Price, Right Time, and Right Place (or Source). "Right reputation" is not one of these standard rights. D. Right reputation Q2. The main purpose of procurement in an organisation is to: Procurement's core function is to acquire the necessary goods and services to support the organisation's operations and strategic goals. B. Obtain goods and services to meet business needs Q3. Which activity comes FIRST in the procurement cycle? The procurement cycle begins with identifying and defining what is needed by the organisation. B. Identifying needs Q4. A "purchase order” is best described as: A purchase order (PO) is a legal document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It serves as a legal offer. C. A legal offer to buy goods or services Q5. Which of the following is an indirect cost in procurement? Indirect costs are those not directly tied to the production of a good or service but are necessary for the general operation of the business. Office stationery is an example of an indirect supply. C. Office stationery Q6. Which statement BEST describes the supply chain? A supply chain is the entire network of organisations and activities involved in creating and delivering a product or service to the end customer. B. The sequence of organisations involved in producing and delivering goods/services Q7. Which of the following is a key objective of inventory management? Effective inventory management aims to balance the availability of goods with the costs associated with holding them, including reducing lead times and storage expenses. B. Reduce lead times and holding costs Q8. Which document formally requests goods or services internally? A requisition form is an internal document used by a department to formally request the purchase of goods or services. A. Requisition form Q9. The term “added value” in procurement means: Added value in procurement refers to enhancements or features that make a product or service more desirable or beneficial to the customer, beyond its basic function. B. Enhancements that make a product or service more attractive to the customer Q10. Which of the following BEST explains economies of scale? Economies of scale occur when the cost per unit of production decreases as the volume of production or order size increases. A. Cost per unit falls as order size increases Q11. A supplier evaluation is carried out mainly to: Supplier evaluation is conducted to assess a supplier's ability to meet the organisation's requirements, including their capacity, quality, and reliability. B. Assess potential supplier capability Q12. The "triple bottom line" refers to: The triple bottom line is a framework that suggests organisations should commit to focusing on social and environmental concerns just as they do on profits. The three Ps are People, Planet, and Profit. B. People, planet, profit Q13. A blanket order is MOST suitable when: A blanket order is a long-term agreement with a supplier for repeat purchases of standard items over a period, often at pre-negotiated prices. B. There is a need for repeat purchases of standard items Q14. Which of the following is NOT an ethical procurement practice? Bribery is an unethical practice that involves offering or accepting something of value to influence a decision, which undermines fair competition and transparency. B. Bribery to secure contracts Q15. A "stockout" occurs when: A stockout, or out-of-stock situation, happens when an item is not available in inventory when it is needed. B. Stock is unavailable when required Q16. Which of the following is an advantage of e-procurement systems? E-procurement systems automate many purchasing processes, leading to greater efficiency and a reduction in administrative costs. C. Reduced transaction costs Q17. A key difference between goods and services procurement is that: Goods are tangible and can be stored, while services are intangible and are consumed at the point of delivery, meaning they cannot be stored. B. Goods can be stored, services cannot Q18. Which of the following BEST defines a stakeholder? A stakeholder is any individual, group, or organisation that has an interest in or can be affected by the decisions or actions of a business. B. Anyone who has an interest in or is affected by a decision Q19. Which type of specification describes what a product must achieve rather than how it should be made? A performance specification focuses on the desired outcome, functionality, and performance characteristics of a product or service, rather than detailing its design or construction. B. Performance specification Q20. The key purpose of contract terms and conditions is to: Contract terms and conditions legally define the rights, responsibilities, and obligations of all parties involved in an agreement. B. Define rights and obligations of parties Q21. Which of the following is NOT a direct procurement activity? Direct procurement involves purchasing items that become part of the final product or service. Ordering office supplies is an indirect procurement activity, supporting general operations. C. Ordering office supplies Q22. The procurement function adds value to a business mainly by: Procurement adds value by efficiently acquiring necessary goods and services, which helps minimise costs and ensures a continuous supply for operations. B. Minimising costs and ensuring supply Q23. Which of the following is a disadvantage of excessive stockholding? Holding too much inventory incurs various costs, including storage space, insurance, obsolescence, and capital tied up. B. High storage costs Q24. Which procurement document is a supplier's confirmation of an order? An order acknowledgement is a document sent by a supplier to confirm receipt and acceptance of a buyer's purchase order. D. Order acknowledgement Q25. Which of the following is an internal stakeholder? Internal stakeholders are individuals or groups within the organisation. The finance department is an internal part of the company. D. Finance department Q26. Corporate Social Responsibility (CSR) in procurement focuses on: CSR in procurement involves integrating social and environmental considerations into purchasing decisions and supply chain management. B. Meeting environmental and social obligations Q27. A framework agreement is: A framework agreement is a long-term contract with one or more suppliers to establish terms and conditions for future purchases over a specified period, often for recurring needs. B. A long-term agreement covering multiple purchases Q28. Which of the following best describes “procurement by tender”? Procurement by tender (or tendering) is a formal, competitive process where organisations invite bids from suppliers for specific goods or services and then evaluate those bids. B. A formal competitive process to invite and evaluate bids Q29. Which of the following is NOT part of the typical purchasing cycle? The purchasing cycle involves steps from identifying needs to payment. Manufacturing goods is a production activity, not a direct part of the purchasing cycle. C. Manufacturing goods Q30. The process of ensuring suppliers deliver on time and in full is called: Expediting is the process of monitoring and chasing orders to ensure timely delivery and prevent delays. A. Expediting Q31. Which of the following is an example of a capital item? Capital items are long-term assets used in the production of goods or services, such as machinery, buildings, or vehicles. C. Factory machinery Q32. Which of the following best describes a KPI (Key Performance Indicator)? A KPI is a quantifiable measure used to evaluate the success of an organisation, department, or individual in meeting objectives. A. A measurement used to assess performance against objectives Q33. A disadvantage of using a single supplier is: Relying on a single supplier creates a high dependency, increasing the risk of supply disruption if that supplier faces issues. C. Higher dependency risk Q34. Which of the following is a typical method of supplier appraisal? Supplier appraisal involves systematically evaluating a supplier's capabilities and performance, often through methods like audits, site visits, and performance reviews. B. Conducting supplier audits Q35. Lead time is best defined as: Lead time is the total time elapsed from the moment an order is placed until the goods or services are received by the buyer. A. The period between order placement and delivery Q36. Which of the following is NOT a typical responsibility of the procurement function? Product design is typically the responsibility of research and development (R&D) or engineering departments, not procurement. Procurement's role is to source items based on design specifications. C. Conducting product design Q37. The acronym RFQ stands for: RFQ stands for Request for Quotation, a document used to solicit price quotes from suppliers for specific goods or services. B. Request for Quotation Q38. The most appropriate procurement method for complex, high-value purchases is: Tendering is a formal, competitive process suitable for complex, high-value purchases, allowing for detailed evaluation of bids beyond just price. B. Tendering Q39. A “make or buy” decision considers: A make-or-buy decision is a strategic choice an organisation makes about whether to produce a good or service internally ("make") or to purchase it from an external supplier ("buy" or outsource). B. Whether to produce in-house or outsource Q40. Which of the following is NOT a typical benefit of good supplier relationships? Good supplier relationships aim to reduce risks and improve supply chain stability, not increase disruption. C. Higher risk of disruption Q41. Which of the following is a benefit of standardisation of specifications? Standardising specifications means using common requirements for similar items, which can reduce variety, simplify processes, and lower costs. C. Reduces costs and complexity Q42. Which of the following would be classified as a service purchase? Consultancy support involves providing expertise or advice, which is an intangible service. B. Consultancy support Q43. The key purpose of a delivery note is to: A delivery note accompanies goods and serves as proof that the items listed have been delivered to the recipient. B. Confirm receipt of goods Q44. The difference between procurement and purchasing is that: Procurement is a broader, more strategic function that encompasses the entire process of acquiring goods and services, including strategic sourcing, supplier relationship management, and contract management. Purchasing is a more transactional activity focused on placing orders and processing payments. A. Procurement is broader, covering strategy and relationships Q45. Which of the following is an example of a direct procurement item? Direct procurement items are those that become part of the final product or are directly consumed in the production process. Spare parts used in production, if they are components of the final product, would be direct. B. Spare parts used in production Q46. Which procurement method is most suitable for low-value, low-risk items? Routine ordering is efficient for frequently purchased, low-value, and low-risk items, often using simplified processes or blanket orders. B. Routine ordering Q47. Which of the following is an example of unethical behaviour? Sharing confidential supplier information without permission is a breach of trust and confidentiality, which is unethical in procurement. B. Sharing confidential supplier information without permission Q48. A key advantage of competitive bidding is: Competitive bidding encourages multiple suppliers to compete for a contract, promoting fairness, transparency, and potentially better value for the buyer. C. Encourages fair competition Q49. A “spot order” is best described as: A spot order is a one-off, immediate purchase made for a specific, often urgent, need without a long-term contract. B. An immediate one-off purchase Q50. The purpose of a supplier code of conduct is to: A supplier code of conduct sets out the ethical, social, and environmental standards that an organisation expects its suppliers to adhere to. B. Establish expected ethical standards Q51. Which of the following is a main element of the CIPS Code of Ethics? The CIPS Code of Ethics emphasises integrity, transparency, and avoiding conflicts of interest to ensure fair and ethical procurement practices. A. Avoiding conflicts of interest Q52. Which is the most important factor in sourcing critical, high-value items? For critical and high-value items, ensuring the supplier is reliable and provides high-quality goods or services is paramount to avoid disruptions and maintain operational integrity. B. Supplier reliability and quality Q53. Corporate governance in procurement refers to: Corporate governance in procurement involves establishing systems of rules, practices, and processes by which procurement decisions are directed and controlled, ensuring accountability and transparency. B. Oversight and accountability in decision-making Q54. Which of the following is NOT an advantage of global sourcing? While global sourcing offers many advantages, it often comes with the disadvantage of longer lead times due to greater distances and complex logistics. C. Increased risk of longer lead times Q55. Which of the following is an external stakeholder? External stakeholders are outside the organisation but are affected by or can affect its operations. The local community is an example of an external stakeholder. C. Local community Q56. Which of the following is an example of added value in procurement? A streamlined supplier delivery service improves efficiency, reduces waiting times, and enhances the overall customer experience, thus adding value. A. Streamlined supplier delivery service Q57. The process of speeding up urgent orders is called: Expediting is the act of accelerating the delivery of an order, often due to urgency or potential delays. A. Expediting Q58. Which type of specification details exact materials and dimensions? A technical specification provides precise details about the design, materials, dimensions, and construction of a product. B. Technical specification Q59. A bill of materials (BOM) is used mainly for: A Bill of Materials (BOM) is a comprehensive list of all the raw materials, components, and sub-assemblies required to manufacture a product. A. Identifying all components in a product Q60. Which of the following is NOT a key stage in the purchasing cycle? Product design is typically an engineering or R&D function, preceding the purchasing cycle, which then sources materials based on the design. C. Product design Q61. A two-way communication process between buyer and supplier is known as: Negotiation is a two-way communication process where parties discuss and bargain to reach a mutually acceptable agreement. B. Negotiation Q62. The process of comparing actual supplier performance with agreed standards is: Supplier evaluation involves systematically assessing a supplier's performance against predefined criteria and agreed-upon standards. B. Supplier evaluation Q63. Which of the following is an environmental responsibility in procurement? Reducing waste is a key environmental responsibility, aiming to minimise the consumption of resources and the generation of refuse throughout the supply chain. B. Reducing waste Q64. In terms of stock management, JIT stands for: JIT stands for Just in Time, an inventory management strategy where materials are ordered and received only when needed for production, reducing holding costs. C. Just in Time Q65. Which of the following is a key role of logistics in the supply chain? Logistics primarily involves the planning, implementation, and control of the efficient, effective forward and reverse flow and storage of goods, services, and related information. B. Movement and storage of goods Q66. Which of the following is NOT typically included in contract terms? Customer preferences inform the specifications of a product or service, but they are not typically written into the legal terms and conditions of a contract itself. D. Customer preferences Q67. Which of the following is an example of indirect procurement? Indirect procurement involves purchasing goods and services that support the organisation's operations but do not become part of the final product. Marketing services fall into this category. C. Marketing services Q68. An RFI (Request for Information) is used to: An RFI is a preliminary document used to gather general information from potential suppliers about their capabilities, products, and services before a formal tender process. A. Obtain initial information from suppliers Q69. Which of the following would be classed as a consumable item? Consumable items are goods that are used up or depleted over time and need to be regularly replaced, such as printer ink. A. Printer ink Q70. Which of the following is an example of strategic procurement activity? Strategic procurement activities are long-term and aim to build competitive advantage. Long-term supplier relationship management is a key strategic activity. B. Long-term supplier relationship management Q71. The key purpose of a purchase requisition is: A purchase requisition is an internal document used to formally communicate a need for goods or services from one department to the purchasing department. A. To formally request goods/services internally Q72. Which of the following is NOT a common procurement document? A sales forecast is a planning document used for predicting future sales, not a document typically generated or used within the procurement process itself. C. Sales forecast

Question 2

Here are the answers to your questions: Q1. Which of the following is NOT one of the “five rights” of procurement? The "five rights" of procurement typically refer to Right Quality, Right Quantity, Right Price, Right Time, and Right Place (or Source). "Right reputation" is not one of these standard rights. D. Right reputation Q2. The main purpose of procurement in an organisation is to: Procurement's core function is to acquire the necessary goods and services to support the organisation's operations and strategic goals. B. Obtain goods and services to meet business needs Q3. Which activity comes FIRST in the procurement cycle? The procurement cycle begins with identifying and defining what is needed by the organisation. B. Identifying needs Q4. A "purchase order” is best described as: A purchase order (PO) is a legal document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It serves as a legal offer. C. A legal offer to buy goods or services Q5. Which of the following is an indirect cost in procurement? Indirect costs are those not directly tied to the production of a good or service but are necessary for the general operation of the business. Office stationery is an example of an indirect supply. C. Office stationery Q6. Which statement BEST describes the supply chain? A supply chain is the entire network of organisations and activities involved in creating and delivering a product or service to the end customer. B. The sequence of organisations involved in producing and delivering goods/services Q7. Which of the following is a key objective of inventory management? Effective inventory management aims to balance the availability of goods with the costs associated with holding them, including reducing lead times and storage expenses. B. Reduce lead times and holding costs Q8. Which document formally requests goods or services internally? A requisition form is an internal document used by a department to formally request the purchase of goods or services. A. Requisition form Q9. The term “added value” in procurement means: Added value in procurement refers to enhancements or features that make a product or service more desirable or beneficial to the customer, beyond its basic function. B. Enhancements that make a product or service more attractive to the customer Q10. Which of the following BEST explains economies of scale? Economies of scale occur when the cost per unit of production decreases as the volume of production or order size increases. A. Cost per unit falls as order size increases Q11. A supplier evaluation is carried out mainly to: Supplier evaluation is conducted to assess a supplier's ability to meet the organisation's requirements, including their capacity, quality, and reliability. B. Assess potential supplier capability Q12. The "triple bottom line" refers to: The triple bottom line is a framework that suggests organisations should commit to focusing on social and environmental concerns just as they do on profits. The three Ps are People, Planet, and Profit. B. People, planet, profit Q13. A blanket order is MOST suitable when: A blanket order is a long-term agreement with a supplier for repeat purchases of standard items over a period, often at pre-negotiated prices. B. There is a need for repeat purchases of standard items Q14. Which of the following is NOT an ethical procurement practice? Bribery is an unethical practice that involves offering or accepting something of value to influence a decision, which undermines fair competition and transparency. B. Bribery to secure contracts Q15. A "stockout" occurs when: A stockout, or out-of-stock situation, happens when an item is not available in inventory when it is needed. B. Stock is unavailable when required Q16. Which of the following is an advantage of e-procurement systems? E-procurement systems automate many purchasing processes, leading to greater efficiency and a reduction in administrative costs. C. Reduced transaction costs Q17. A key difference between goods and services procurement is that: Goods are tangible and can be stored, while services are intangible and are consumed at the point of delivery, meaning they cannot be stored. B. Goods can be stored, services cannot Q18. Which of the following BEST defines a stakeholder? A stakeholder is any individual, group, or organisation that has an interest in or can be affected by the decisions or actions of a business. B. Anyone who has an interest in or is affected by a decision Q19. Which type of specification describes what a product must achieve rather than how it should be made? A performance specification focuses on the desired outcome, functionality, and performance characteristics of a product or service, rather than detailing its design or construction. B. Performance specification Q20. The key purpose of contract terms and conditions is to: Contract terms and conditions legally define the rights, responsibilities, and obligations of all parties involved in an agreement. B. Define rights and obligations of parties Q21. Which of the following is NOT a direct procurement activity? Direct procurement involves purchasing items that become part of the final product or service. Ordering office supplies is an indirect procurement activity, supporting general operations. C. Ordering office supplies Q22. The procurement function adds value to a business mainly by: Procurement adds value by efficiently acquiring necessary goods and services, which helps minimise costs and ensures a continuous supply for operations. B. Minimising costs and ensuring supply Q23. Which of the following is a disadvantage of excessive stockholding? Holding too much inventory incurs various costs, including storage space, insurance, obsolescence, and capital tied up. B. High storage costs Q24. Which procurement document is a supplier's confirmation of an order? An order acknowledgement is a document sent by a supplier to confirm receipt and acceptance of a buyer's purchase order. D. Order acknowledgement Q25. Which of the following is an internal stakeholder? Internal stakeholders are individuals or groups within the organisation. The finance department is an internal part of the company. D. Finance department Q26. Corporate Social Responsibility (CSR) in procurement focuses on: CSR in procurement involves integrating social and environmental considerations into purchasing decisions and supply chain management. B. Meeting environmental and social obligations Q27. A framework agreement is: A framework agreement is a long-term contract with one or more suppliers to establish terms and conditions for future purchases over a specified period, often for recurring needs. B. A long-term agreement covering multiple purchases Q28. Which of the following best describes “procurement by tender”? Procurement by tender (or tendering) is a formal, competitive process where organisations invite bids from suppliers for specific goods or services and then evaluate those bids. B. A formal competitive process to invite and evaluate bids Q29. Which of the following is NOT part of the typical purchasing cycle? The purchasing cycle involves steps from identifying needs to payment. Manufacturing goods is a production activity, not a direct part of the purchasing cycle. C. Manufacturing goods Q30. The process of ensuring suppliers deliver on time and in full is called: Expediting is the process of monitoring and chasing orders to ensure timely delivery and prevent delays. A. Expediting Q31. Which of the following is an example of a capital item? Capital items are long-term assets used in the production of goods or services, such as machinery, buildings, or vehicles. C. Factory machinery Q32. Which of the following best describes a KPI (Key Performance Indicator)? A KPI is a quantifiable measure used to evaluate the success of an organisation, department, or individual in meeting objectives. A. A measurement used to assess performance against objectives Q33. A disadvantage of using a single supplier is: Relying on a single supplier creates a high dependency, increasing the risk of supply disruption if that supplier faces issues. C. Higher dependency risk Q34. Which of the following is a typical method of supplier appraisal? Supplier appraisal involves systematically evaluating a supplier's capabilities and performance, often through methods like audits, site visits, and performance reviews. B. Conducting supplier audits Q35. Lead time is best defined as: Lead time is the total time elapsed from the moment an order is placed until the goods or services are received by the buyer. A. The period between order placement and delivery Q36. Which of the following is NOT a typical responsibility of the procurement function? Product design is typically the responsibility of research and development (R&D) or engineering departments, not procurement. Procurement's role is to source items based on design specifications. C. Conducting product design Q37. The acronym RFQ stands for: RFQ stands for Request for Quotation, a document used to solicit price quotes from suppliers for specific goods or services. B. Request for Quotation Q38. The most appropriate procurement method for complex, high-value purchases is: Tendering is a formal, competitive process suitable for complex, high-value purchases, allowing for detailed evaluation of bids beyond just price. B. Tendering Q39. A “make or buy” decision considers: A make-or-buy decision is a strategic choice an organisation makes about whether to produce a good or service internally ("make") or to purchase it from an external supplier ("buy" or outsource). B. Whether to produce in-house or outsource Q40. Which of the following is NOT a typical benefit of good supplier relationships? Good supplier relationships aim to reduce risks and improve supply chain stability, not increase disruption. C. Higher risk of disruption Q41. Which of the following is a benefit of standardisation of specifications? Standardising specifications means using common requirements for similar items, which can reduce variety, simplify processes, and lower costs. C. Reduces costs and complexity Q42. Which of the following would be classified as a service purchase? Consultancy support involves providing expertise or advice, which is an intangible service. B. Consultancy support Q43. The key purpose of a delivery note is to: A delivery note accompanies goods and serves as proof that the items listed have been delivered to the recipient. B. Confirm receipt of goods Q44. The difference between procurement and purchasing is that: Procurement is a broader, more strategic function that encompasses the entire process of acquiring goods and services, including strategic sourcing, supplier relationship management, and contract management. Purchasing is a more transactional activity focused on placing orders and processing payments. A. Procurement is broader, covering strategy and relationships Q45. Which of the following is an example of a direct procurement item? Direct procurement items are those that become part of the final product or are directly consumed in the production process. Spare parts used in production, if they are components of the final product, would be direct. B. Spare parts used in production Q46. Which procurement method is most suitable for low-value, low-risk items? Routine ordering is efficient for frequently purchased, low-value, and low-risk items, often using simplified processes or blanket orders. B. Routine ordering Q47. Which of the following is an example of unethical behaviour? Sharing confidential supplier information without permission is a breach of trust and confidentiality, which is unethical in procurement. B. Sharing confidential supplier information without permission Q48. A key advantage of competitive bidding is: Competitive bidding encourages multiple suppliers to compete for a contract, promoting fairness, transparency, and potentially better value for the buyer. C. Encourages fair competition Q49. A “spot order” is best described as: A spot order is a one-off, immediate purchase made for a specific, often urgent, need without a long-term contract. B. An immediate one-off purchase Q50. The purpose of a supplier code of conduct is to: A supplier code of conduct sets out the ethical, social, and environmental standards that an organisation expects its suppliers to adhere to. B. Establish expected ethical standards Q51. Which of the following is a main element of the CIPS Code of Ethics? The CIPS Code of Ethics emphasises integrity, transparency, and avoiding conflicts of interest to ensure fair and ethical procurement practices. A. Avoiding conflicts of interest Q52. Which is the most important factor in sourcing critical, high-value items? For critical and high-value items, ensuring the supplier is reliable and provides high-quality goods or services is paramount to avoid disruptions and maintain operational integrity. B. Supplier reliability and quality Q53. Corporate governance in procurement refers to: Corporate governance in procurement involves establishing systems of rules, practices, and processes by which procurement decisions are directed and controlled, ensuring accountability and transparency. B. Oversight and accountability in decision-making Q54. Which of the following is NOT an advantage of global sourcing? While global sourcing offers many advantages, it often comes with the disadvantage of longer lead times due to greater distances and complex logistics. C. Increased risk of longer lead times Q55. Which of the following is an external stakeholder? External stakeholders are outside the organisation but are affected by or can affect its operations. The local community is an example of an external stakeholder. C. Local community Q56. Which of the following is an example of added value in procurement? A streamlined supplier delivery service improves efficiency, reduces waiting times, and enhances the overall customer experience, thus adding value. A. Streamlined supplier delivery service Q57. The process of speeding up urgent orders is called: Expediting is the act of accelerating the delivery of an order, often due to urgency or potential delays. A. Expediting Q58. Which type of specification details exact materials and dimensions? A technical specification provides precise details about the design, materials, dimensions, and construction of a product. B. Technical specification Q59. A bill of materials (BOM) is used mainly for: A Bill of Materials (BOM) is a comprehensive list of all the raw materials, components, and sub-assemblies required to manufacture a product. A. Identifying all components in a product Q60. Which of the following is NOT a key stage in the purchasing cycle? Product design is typically an engineering or R&D function, preceding the purchasing cycle, which then sources materials based on the design. C. Product design Q61. A two-way communication process between buyer and supplier is known as: Negotiation is a two-way communication process where parties discuss and bargain to reach a mutually acceptable agreement. B. Negotiation Q62. The process of comparing actual supplier performance with agreed standards is: Supplier evaluation involves systematically assessing a supplier's performance against predefined criteria and agreed-upon standards. B. Supplier evaluation Q63. Which of the following is an environmental responsibility in procurement? Reducing waste is a key environmental responsibility, aiming to minimise the consumption of resources and the generation of refuse throughout the supply chain. B. Reducing waste Q64. In terms of stock management, JIT stands for: JIT stands for Just in Time, an inventory management strategy where materials are ordered and received only when needed for production, reducing holding costs. C. Just in Time Q65. Which of the following is a key role of logistics in the supply chain? Logistics primarily involves the planning, implementation, and control of the efficient, effective forward and reverse flow and storage of goods, services, and related information. B. Movement and storage of goods Q66. Which of the following is NOT typically included in contract terms? Customer preferences inform the specifications of a product or service, but they are not typically written into the legal terms and conditions of a contract itself. D. Customer preferences Q67. Which of the following is an example of indirect procurement? Indirect procurement involves purchasing goods and services that support the organisation's operations but do not become part of the final product. Marketing services fall into this category. C. Marketing services Q68. An RFI (Request for Information) is used to: An RFI is a preliminary document used to gather general information from potential suppliers about their capabilities, products, and services before a formal tender process. A. Obtain initial information from suppliers Q69. Which of the following would be classed as a consumable item? Consumable items are goods that are used up or depleted over time and need to be regularly replaced, such as printer ink. A. Printer ink Q70. Which of the following is an example of strategic procurement activity? Strategic procurement activities are long-term and aim to build competitive advantage. Long-term supplier relationship management is a key strategic activity. B. Long-term supplier relationship management Q71. The key purpose of a purchase requisition is: A purchase requisition is an internal document used to formally communicate a need for goods or services from one department to the purchasing department. A. To formally request goods/services internally Q72. Which of the following is NOT a common procurement document? A sales forecast is a planning document used for predicting future sales, not a document typically generated or used within the procurement process itself. C. Sales forecast

Q1. Which of the following is NOT one of the “five rights” of procurement?

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