Measuring Performance in Purchasing and Supply

Question 1

Which of the following is likely to be of most use when setting a purchasing department budget for the next year?

A. Cost of inventory last year

B. Expected cost of staff next year.

C. Expected number of customers next year

D. Number of suppliers last year

Correct Answer: C

Question 2

Against which of the following would you measure a supplier's performance?

A. Use Porter's criteria

B. Another supplier's performance.

C. The performance of the customer

D. Sales and marketing performance

Correct Answer: B

Question 3

Which of the following is a useful indicator that the value of stock held is too high or too low?

A. Comparing the total value of issues out of store against the same period in the previous year

B. Comparing the total value of receipts into and issues out of store against the same period in the previous year

C. Comparing the total value of receipts into store against the same period in the previous year

D. Comparing the total value of lost or damaged stock against the same period in the previous year.

Correct Answer: B

Question 4

Which of the following is essential for an effective appraisal process?

A. Clearly defined rules and regulations for the post

B. Clearly defined salary levels for each post

C. Clearly defined objectives for each post

D. Clearly defined demarcation lines between levels

Correct Answer: A

Question 5

Which of the following is the most often quoted benefit of joint performance measurement and relationship building techniques?

A. Supplier base enlargement

B. More professional development

C. More understanding of the supply chain

D. More varied problems

Correct Answer: B

Question 6

Which of the following should management ensure is provided by training evaluation?

A. Greater willingness to get involved in all aspects of the business

B. Less willingness to act on one's own initiative

C. Maintenance of the employee's current employment position.

D. Greater willingness to make full use of skills developed

Correct Answer: C

CIPS Measuring Performance in Purchasing and Supply - A10 Exam Practice Test