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Question 16

Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

Options:

location

distribution

reputation

quality

price

Question 17

Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?

Options:

use the Return on Investment Ratio

do an Acid Test

work out the supplier's EBITDA

work out the supplier's gearing ratio

Question 18

Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?

Options:

No, because single sourcing should only be used where there is just one supplier in the market

Yes, because many suppliers tend to increase stock variety and stock proliferation

No, because single sourcing may also be used when a requirement demands expensive set-up costs

Yes, because single sourcing works well within a volatile supply environment

Question 19

Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of their manufacturing operations. Which of the following is a risk of offshoring that Steff should consider.