Question

Which of the following illustrates Lead Time?

1- April 1st - Purchase request approved / May 31st - Product delivered

2- April 1st - Purchase request approved / April 28th – Purchase agreement signed

3- April 28th - Purchase agreement signed / June 1st – Estimated delivery date

4- Mark for follow up

Question 11 of 60.

What documents are examined for three-way matching?

1- Purchase order / Receiving report / Goods Received Note (GRN)

2- Purchase order / Scope of Works (SOW) / Goods Received Note (GRN)

3- Supplier’s invoice / Purchase order / Service Completion Report (SRN)

4- Supplier’s invoice / Purchase order / Goods Received Note (GRN)

Question 12 of 60.

How often is it recommended to review available suppliers for Framework/Preferred Master Supplier Agreements to ensure cost-effectiveness

1- Every month

2- Every 6 months

3- Every 1 year

4- Every 5 years

Question 13 of 60.

Bidders agree to pay 10% of the estimated contract amount for failing to enter into the contract. Where in a contract would you find this specification?

1- Penalty clause

2- Bid guarantee

3- Change order

4- Code of Ethics

Question 14 of 60.

How should an organization’s procurement manager respond to a request for purchasing prescribed pharmaceutical items?

1- Request management have a special place to store such pharmaceutical items

2- Explain that the request is denied as the item may lead to corruption activities

3- Ask the requestor to check if such procurement may need special donor/organizational approval

4- Mark for follow up

Question 15 of 60.

A supplier estimates it will take a minimum of 60 days from the time the contract is signed to fill the order. This is an example of which type of time?

1- Lead Time

2- Time to Award

3- Supplier Delivery Time

Question 16 of 60.

Why is it important to publicly announce the tender?

1- Demonstrate transparency and attract more competitive potential bidders

2- Inform communities about ongoing procurement activities

3- Encourage suppliers to read newspapers and access the internet

Answer 1

1. Lead time illustration is clearly defined in-

April 1st- Purchase Request Approved/ May 31st- Product Delivered

Because Lead time is the amount of time that passes from the start of the process till the conclusion. In this case, Lead time is the amount of time it takes from placing an order and receiving the order and having in-hand. While looking at other options, this is the appropriate option that defines Lead Time as per definition.

11. Three way matching is a process used to process a vendor invoice to ensure that the payment is complete and accurate. The main aim is to highlight any discrepancies in the three important documents in the purchasing process-

Supplier's invoice- Requesting payment for the purchases made and sent to purchaser. Includes same information as Purchase Order and an Invoice Num.

Purchase Order- This is an official confirmation of an order that is sent from the purchaser to authorise a purchase.

Goods Received Note (GRN)- This is a proof of delivery and is sent with the goods delivery to the purchaser. Same details as invoice are included.

This can be useful to verify if there is any overspending or paying for an item that they didn't receive.

Hence, 4th option is the right choice- Supplier's invoice, Purchase Order, GRN.

12. A master supply agreement is a contract between two parties consolidating two or more agreements into one harmonized agreement. They specify price, payment policies and purchase commitments. Delivery scheduled along with penalties incurred are mentioned.

For cost effectiveness, it is recommended to review the Master Supplier Agreement for every 1 year. Due to change in the fiscal year and slight modifications in the costs, the ideal time period is 1 year.

Hence 3rd Option is the right choice- 1 year

13. The above specification comes under Penalty Clause.

This clause in a contract is a provision that obligates the defaulting party to provide some form of compensation to the innocent party in the event of the breach of the contract. In order to minimise the hassle and cost, a penalty provision can be included in the contract.

Hence, 1st option is the right choice- Penalty Clause