Preview Questions Procurement Officer | Role Specific Skill

Question 1: What does a supplier scorecard typically assess?

Which action should you take?

Choose only one option

Supplier performance based on criteria like quality, delivery, and cost

Supplier market entry strategies and expansion plans

Supplier pricing strategies and market share

Supplier marketing efforts and public relations

Question 2: Which of the following is an effective strategy for managing perishable inventory in a manufacturing facility?

Which action should you take?

Choose only one option

Increasing order quantity and ordering in bulk

Utilizing FIFO (First In, First Out) inventory system

Storing inventory in a centralized warehouse

Holding inventory as safety stock for longer periods

Question 3: How do you mitigate risks associated with a single-source supplier?

Which action should you take?

Choose only one option

By developing contingency plans, identifying alternative suppliers, and maintaining flexible contracts

By establishing long-term contracts without reviewing other options

By focusing only on the price and ignoring potential risks

By accepting the risks and relying on the supplier's performance

Question 4: What is the most effective way to track and manage cost overruns in procurement projects?

Which action should you take?

Choose only one option

Rely on suppliers to manage costs and avoid tracking

Implement a cost monitoring system that tracks actual vs. budgeted costs, and adjust procurement strategies accordingly

Focus only on the final procurement cost without monitoring throughout the process

Assume that overruns are inevitable and ignore them

Question 5: What role does forecasting demand play in the sourcing and purchasing process for manufacturing materials?

Which action should you take?

Choose only one option

It increases the risk of over-ordering materials

It helps to predict future material needs and adjust procurement strategies accordingly

It ensures the procurement officer buys based on past order history only

It allows procurement officers to negotiate with suppliers without forecasting

Question 6: What is the role of contract management in supplier relationships, and how do you optimize it?

Which action should you take?

Choose only one option

Focus only on contract price and ignore terms and performance clauses

Avoid reviewing contracts and assume that suppliers will comply

Use vague terms to ensure flexibility in supplier relationships

Clearly define terms, expectations, and performance metrics, and regularly review contracts to ensure compliance