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Exam Code: 630-006Exam Name: C.P.M. Module 2: Supply Environment
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630-006 Practice Exam Total Q&A: 285 Questions and Answers
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Exam Code: 630-005Exam Name: C.P.M. Module 1: Purchasing Process
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NO.1 If a supplier's level of quality was unsatisfactory on past orders and the level of quality on current
orders is critical, which of the following options would be the BEST way to handle the situation?
A. Timely inspection by the buyer's company at the supplier's plant
B. Requiring the supplier to supply extra products to cover rejects
C. Require 100% inspection before the products leave the warehouse of the order by the buyer's
company's quality control department
D. Label "Quality of Material is Critical" on the purchase order
Answer: A
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NO.2 If a purchasing manager is represented by buying an organization in a meeting with a governmental
body. The manager could possibly embark in the following:
A. explaining the organization's new MRP system
B. promoting the business to other participants
C. negotiating for the buying organization
D. discussing the advantages and disadvantages of various types of contractual arrangements
Answer: C
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NO.3 Which of the following approaches focuses on cooperative rather than adversarial relationships with
suppliers?
A. single sourcing
B. cross-functional teams
C. supply base management
D. supplier partnerships
Answer: D
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NO.4 Which statement about setting negotiating objectives is FALSE?
A. It should be defined with sufficient specificity to permit measurements.
B. It should be established for each issue or condition to be negotiated.
C. They should establish a supplier's strengths and avoid reference to its weaknesses.
D. It should be based on databases derived from cooperative efforts of purchasing,
production, and engineering.
Answer: C
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NO.5 With which of the following would purchasing management be MOST concerned in day-to-day
operational control in a manufacturing firm?
A. labor utilization variance
B. materials utilization variance
C. labor cost variance
D. materials cost variance
Answer: D
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NO.6 In a situation where the purchasing and production departments share responsibility for product
fabrication, lead time for delivery of material, work schedules, and selection of sources of supply. Which
responsibilities would be allocated to the production department? (Choose two.)
A. product fabrication
B. lead time for delivery of material
C. work schedules
D. selection of sources of supply
Answer: A, C
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NO.7 Which of the following tools are MOST important for achieving continuous improvements in an
organization's integration with its supplier?
A. Quality inspection at the plant
B. Involvement in product design
C. Suppliers input in forms design
D. Joint examination of costs structure
Answer: B
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NO.8 .Which of the following BEST defines negotiations?
A. reaching an agreement through discussion
B. maximizing one's position over one's opponent
C. reaching an agreement through competitive bidding
D. ensuring that the terms and conditions of a contract are met
Answer: A
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