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Scope and Influence of Procurement and Supply

Last Update Nov 7, 2024
Total Questions : 40 With Comprehensive Analysis

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Scope and Influence of Procurement and Supply Questions and Answers

Questions 1

Explain, with examples, the three different ways one can categorise procurement spend: direct vs indirect, capital expenditure vs operational expenditure and stock vs non-stock items. (25 points)

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Questions 2

What is meant by the term ‘centralised procurement’? (10 points) Explain 2 forms of Hybrid Procurement Structures (15 points).

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Questions 3

Sarah has recently been hired as the new Head of Procurement at Alpha Ltd, a manufacturer of small electronics such as hairdryers and alarm clocks. Alpha Ltd has a large factory based in Birmingham where many of the products are manufactured. One of the large pieces of machinery in the factory has recently broken and Sarah has been charged with replacing it as quickly as possible. Sarah is considering using the Whole Life Costing approach to this procurement. What is meant by Whole Life Costing? (5 points). Discuss 5 factors that Sarah should consider when buying new machinery (20 points).

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