Due to increasing demand, a local restaurant is requesting its fish vendor to supply larger quantity. The restaurant manager also asks the vendor whether it is possible to reduce the total price by 5%. This is known as...?

• A.Straight rebuy
• B.Capital purchase
• C.Modified rebuy
• D.New purchase

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Which of the following problems may be identified as open-ended problems? Select TWO that apply:

• A.Shortage of key medicines in healthcare industry
• B.A cyber attack takes down whole company's IT system
• C.Engine failures cause flight cancellations.
• D.Logistics costs incur a large portion in wholesale prices
• E.The suppliers don't comply with the company's policy on underage labour.

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Which of the following are typically included in a conformance specification? Select TWO that apply.

• A.Product functions
• B.Product dimensions
• C.Brand name
• D.List of outcome
• E.Packaging requirements

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To improve the productivity, Plantation Ltd is planning to purchase a tractor, which it has never bought before. The project must be quick to catch up with the next growing season. Leanne, a jun-ior procurement staff at the company, assumes that she could skip market analysis stage to save time. Is this assumption reasonable?

• A.No, the company assesses supplier's performance solely based on market analysis
• B.Yes, Leanne just needs to purchase the tractor from her friend's company
• C.No, market analysis will inform the company of the pricing as well as latest technology trends
• D.Yes, the company has extensive experience in purchasing tractor

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When procuring a machinery, at which stage buyer must check whether it is working to the stand-ards set out in the design specification?

• A.Installation
• B.Maintenance and repair activities
• C.Customer support
• D.Manufacture

Correct Answer: A

Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer.

Source: Andrew Graves
The installation stage occurs in In-Service Operations. At this stage, the machinery is shipped and installed on the buyer's premises and check to ensure that it is working to the standards set out in the design specification.
Reference:
LO 3, AC 3.2

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