A10 Exam Training Practice Tests (CIPS Measuring Performance in Purchasing and Supply)]

Question 1

Which of the following measures could be used to verify the effectiveness of stores management?

A. Value of credit given B. Value of credits taken C. Value of stock orders placed D. Value of stock damaged

Correct Answer: A

Question 2

A joint performance measurement system should benefit both buyer and supplier. Which of the following is a benefit to the buying organisation?

A. It automatically leads to reduction in overall costs B. It improves both buyer and supplier production process C. It allows for products to be purchased 'off the shelf ' D. It enables unnecessary costs to be designed out of the system

Correct Answer: B

Question 3

Which of the following is an appropriate method of assessing an individual purchaser's performance?

A. A quality circle programme B. An appraisal scheme C. A supplier rating programme D. A supplier development programme

Correct Answer: C

Question 4

Which of the following is a valid analytical technique used in stores/warehouses for measuring inventory?

A. Critial path analysis B. Stock turnover C. Ratio analysis D. Statistical Process Control

Correct Answer: D

Question 5

Which of the following can be described as 'the achievement of an equivalent financial saving or benefit that is not based on a movement in unit price'?

A. Added value B. Average value C. Residual value D. Reduced value

Correct Answer: C

Question 6

Which one of the following is the best example of a goal that will directly affect purchasing performance?

A. Increase departmental productivity by 'z'% over the next three months. B. Increase machine output by 'y'% by end May 2005 C. Increase market-share by 'x'% by June 2007 D. Increase marketing and advertising budgets this year

Correct Answer: C

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