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CPPB Exam - Domain VI - Strategic Procurement Planning Questions With Complete Solution
CPPB Exam - Domain VI - Strategic Procurement Planning Questions With Complete Solution
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CPPB Exam - Domain VI - Strategic ProcurementPlanning Questions With Complete Solution
Quiz :SWOT analysis - Answer :a planning tool used to analyze an
organization's strengths, weaknesses, opportunities, and threats
Quiz :Pareto Principle - Answer :80% of purchasing cost is created by 20% of
the purchase orders issued
Quiz :spend analysis - Answer :process of collecting, cleansing, classifying and
analyzing expenditure data with the purpose of decreasing procurement costs,
improving efficiency, and monitoring compliance
Quiz :procurement profile - Answer :result produced after conducting a series
of various analyses on:
-procurement expenditures of an organization
- range of commodities & services acquired through procurement (spend
analysis),
-markets that provide them (market analysis)
-influence of suppliers/entity in the market
-risks inherent in market
Quiz :buying plan - Answer :based on demand, market & supplier analyses.
should be developed for each major type of material targeted for purchase.
Quiz :market research - Answer :current info to identify the most beneficial
method for acquiring, distributing, and supporting supplies & services.
journals
indexes
supplier shows
industry forums,
websites
discussions with colleagues
Quiz :forecasting - Answer :tool to determine future needs
, ongoing assessment to examine opportunities and is an essential element of
strategic planning
requires buyers to keep abreast of market and surveys, and understand
various indicators, business cycles, indexes, lead times, and price histories.
affects timing of spot bids
Quiz :Purchasing Manager's Index (PMI) - Answer :indicator that identifies
highs and lows in the economy
Quiz :Fixed Period Average - Answer :mathematical calculation used to divide
total usage for a fixed period (generally 12 months), using the last fiscal
calendar, by the number of months involved (generally 12)
resulting average is forecast for comparable future period.
ignores current trends, reflects old patterns and not the current direction.
Quiz :Moving Average Method - Answer :continuous average method to
gather most current usage information.
Always uses most recent data - 12 month period would be avg monthly usage
for immediately preceding 12 months; as year progresses, forecast is updating
by dropping oldest month and adding most recent month.
Quiz :Weighted Moving Average Method - Answer :gives more significance to
weighting specific information such as seasonal variations.
Quiz :Mean Absolute Deviation (MAD) - Answer :a measure of the overall
forecast error
MAD = absolute value of errors divided by number of errors. The smaller/lower
the value of MAD, the more accurate the forecast.
Quiz :SD - Answer :standard deviation
Quiz :forecast data include: - Answer :new orders
production
employment
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