A buyer and a supplier plan to sign a contract with cost-plus arrangement. If the cost base is $350 and the markup component is 11% then the invoice price will be...

• A.393.26
• B.388.5
• C.368.5
• D.362

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A manufacturing company signed a contract with a raw material supplier. The contract includes a clause on liquidated damages in case of late delivery. Purchaser was obliged to pay after 30 days from delivery. Eventually raw material was delivered 1 week later than initial plan due to supplier's slow production process. There is no defect in the delivered batch. Which of the following can be claimed by the manufacturing company?

• A.Rights to refunds or repairs
• B.Right of set-off
• C.Right of third party
• D.Right of extending payment

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Maximum Score: 1
Setting key performance indicators (KPIs) for supplier performance should ensure ...

• A.reduced vendor base
• B.managed supply risks
• C.lowest price for products
• D.earliest delivery

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Maximum Score 1
Buyer O has placed an order for the supply and installation of six new servers for a total amount of £600,000 from Supplier A. Which of the following could potentially be treated as examples of a liquidated damages clause within the contract for the supply of the servers?
* If the supplier delivers any of the servers late, £1,000 per server will be deducted from the order per day
* This contract is subject to delay remedies of £X - the amount to be agreed by both parties during delivery
* The sum for breach of the completion date for the order is £40,000 per day up to a maximum of 50% of the contract price
* If the performance of any of the servers degrades within five years, a full refund of £600,000 will be provided

• A.1 and 2 only
• B.3 and 4 only
• C.1 and 3 only
• D.2 and 4 only

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Tony Campbell, a West Logistics Ltd (WLL) procurement manager, is working on a specification for a data storage solution. The current version of an Information Security Management standard (ISO 27001) has been identified as a suitable standard for potential suppliers to be certified to. What is the advantage to WLL of stipulating this type of standard within a product specification?

• A.It removes the requirement for quality management measures
• B.It allows the buying organisation to set the pricing for its products
• C.It ensures the suppliers control spending and pass the savings on
• D.It allows all suppliers to understand the common criteria that is required

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