Q.1.5 Which of these is NOT a reason for global sourcing? A. Larger product range. B. Customs duties. C. Lower cost. D. Technological advancement. E. Quality issues.

Procurement Training Workshop Exercise 1 Choosing a procurement option Which option would you use for the following purchases (tick the box)? International National Competitive Tender | Shopping Direct Framework Competitive Contract Contract Tender 1. One year's supply of photocopying paper and pens 2. Catering (food and drink) for a conference 3. 100,000 solid state electricity meters 4. Construction of a 800 MW Combined Cycle Gas Turbine generating station 5. IT training for 1,000 Ministry staff to be provided over a 1 year period 6. Urgent repairs to a low voltage substation 7. Painting a Ministry office building 8. Providing furniture for 10 offices 9. Purchase and installation of 150 km of high voltage transmission line | 10. Cleaning services for an office building for 1 year

6. If the product is integral and the company has the knowledge but depends for the supplier capacity. Which of the following statement is correct: A. The company will face risks if it outsources this product. B. The company need to increase its capacity to produce the product. C. The company might benefit from outsourcing the product. D. The company should have a strategic partnership with the supplier. E. None of the above 7. Which of the following(s) contract(s) the buyer agrees to pay some agreed upon price for any unit produced by the manufacturer but not purchased by the buyer. A. Revenue sharing contract B. Buy back contract C. Quantity flexibility contract D. Pay back contract 8. Referring to the maturity model, the level of integration where buyers and suppliers have joint planning and forecast is: A. Ad Hoc. B. Defined. C. Linked. D. Integrated. E. Extended.

Boeing got its start in the Pacific Northwest in part because its first airplanes were made using spruce wood for its qualities as a light yet strong wood, but has not used wood for planes for many decades. From this observation, Boeing's persistence in the region can best be described as a) range. b) inertia. c) threshold. d) labor. e) technology.