Domain VI-CPPB Test Questions and Answers
Procurement professionals may use what materials to analyze the market? - Answer-Journals, indexes, supplier shows, industry forums, internet, websites and discussions with colleagues.
Market research is critical to the procurement professional becau...
Domain VI-CPPB Test Questions
and Answers
Procurement professionals may use what materials to analyze the market? - Answer-
Journals, indexes, supplier shows, industry forums, internet, websites and discussions
with colleagues.
Market research is critical to the procurement professional because it gives? - Answer-
Current information
Buying when prices are high or the product is in short demand results in ? - Answer-
Over payment
_____________ is a tool to determine future need? - Answer-Forecasting
_________________ should be used to determine which type of solicitation to use,
such as spot bid or term contract? - Answer-Forecasting
Forecasting requires knowledge of the? - Answer-economy/market
What is PMI? - Answer-Purchasing Manager's Index
Why is PMI used? - Answer-Provides an indication of what will occur in the future based
upon past trends.
Indexes are categorized as? - Answer-diffusion indexes, they measure change in
economic and business activity.
________________ is a tool used to determine future needs. - Answer-Forecasting
A key function of inventory management is? - Answer-Forecasting
Fixed Period Average - Answer-Simple way of forecasting future trends but must be
used carefully because it will reflect old patterns and not the current directions.
Moving average method - Answer-A continuous average method used to gather the
most current usage information about an item by taking trends into account and always
using the most recent data.
Weighted moving average method - Answer-Builds even more accuracy into the system
by giving more significance to weighting specific information such as season variations.
, Mean absolute deviation (MAD) - Answer-The small the value of MAD, the more
accurate the forecast.
Management planning tools to develop procurement strategies and determine future
needs include the following? - Answer-Forecast data, market factors and economic
trends
An ongoing assessment to examine opportunities is a vital component of strategic
planning? - Answer-Forecast data
Effectinve forecasting is a useful tool to determine which methodology to use for a? -
Answer-Solicitation
Examination of current and past economic trends and pricing is critical to? - Answer-
Planning
Name some measurements and indicators that reflect changes in economic and
business activity. - Answer-New orders, production, employment, supplier deliveries,
inventories, PMI
When evaluating market factors, the procurement professional should? - Answer-know
market conditions, determine how competitive the current supply market is, provide
accurate information to the end user to assist in forecasting and assist the end user in
selecting the appropriate solicitation method and the proper time to solicit for needed
products and services.
Off the shelf commodities are produced representing a reasonable competitive
marketplace. - Answer-Stable market
Short fun fluctuations are exhibited in an ? - Answer-Unstable market
An unstable market requires certain consideration, which include? - Answer-Timing,
International Political situations, Weather and growing conditions, speculation an supply
and demand.
Time must be taken up front to research and sssess? - Answer-Market condition, price
history fluctuations, available competition and the characteristics of the industry
What is a spot bid? - Answer-A onetime purchase occasioned by a small requirement,
an unusual or emergency circumstance or a favorable market condition.
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