GE has developed TurboProp engine that is made from over 850 metal parts. These parts are sourced from many suppliers. Value of spend on these parts make up 73% of total spend. Any delay in receiving a part will cause a bottleneck around the production of the engine. Which of the following should be the best course of action of GE's CPO?

• A.Drive down prices by using market competition
• B.Increase production
• C.Part standardisation
• D.Reduce delivery cost

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Which of the following are the fair and reasonable comparators in price analysis? Select TWO that apply:

• A.Pricing formula
• B.Price indices
• C.Strike price
• D.Cost driver
• E.Competitive bidding

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Which of the following are typical environmental considerations throughout the contract life cycle? Select the TWO that apply.

• A.Modern slavery
• B.Health and safety
• C.Inequality
• D.Waste management
• E.Pollution control

Correct Answer: D,E

All procurement has some level of impact on the environment that needs to be minimised to ensure sustainable procurement practices.
The greatest opportunity to influence environmental outcomes is by selecting products and services with the least ongoing environmental impacts, such as use of water, electricity and fuel, waste/disposal management, and impact on human health over the life of the product or service.
Lifecycle stages that impact on the environment:

Most goods and services will have an element of environment impact in a number of areas. The five main impact areas are listed in the following table.

Source: Buying for Victoria
Reference:
LO 3, AC 3.2

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Which of the following specific markets is most likely to have the lowest entry barrier?

• A.Retail
• B.Manufacturing
• C.Financial
• D.Agriculture
• E.Services

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A procurement organisation is keen to encourage innovation available within the supply market in the execution of an upcoming significant contract opportunity. A team member suggests that the specification should define the performance indicators so that supplier's solution can be checked against them. Which of the following will enable the organisation to achieve this goal?

• A.Using an outcome focused specification
• B.Establishing transparent selection criteria
• C.Using an output focused specification
• D.Applying a precise performance framework

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