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Free Practice Quiz Question List

7 Procurement and Supplier Management Online Quiz Questions

Use this free practice quiz with 20 questions to review 7 Procurement and Supplier Management, test your knowledge, and prepare for your next test or exam.

20 questions
01
True or false
1 point

True or false: Procurement planning should begin during project planning, not only when the team is ready to place an order.

  1. A

    True

  2. B

    False

02
Written response
1 point

A project compares doing work in-house with buying from a supplier, including setup, staffing, operations, maintenance, and end-of-life expenses. What cost concept should it use for the comparison?

03
Fill in the blank
1 point

To support a fair supplier comparison, state the evaluation criteria and their relative importance evaluating bids.

04
Choose one
1 point

A supplier submits the lowest bid, but another supplier offers stronger quality and delivery capability. Which principle should guide the selection?

  1. A

    Select the lowest-priced supplier automatically.

  2. B

    Balance price with quality and delivery capability.

  3. C

    Choose the supplier with the most evaluation criteria, regardless of their importance.

  4. D

    Ignore delivery capability if the supplier meets the price target.

05
True or false
1 point

True or false: A procurement contract should assign each risk to the party best able to manage it, rather than transferring risks a supplier cannot reasonably control.

  1. A

    True

  2. B

    False

06
Choose one
1 point

Before finalizing requirements and the procurement schedule, what is the main purpose of researching the market?

  1. A

    Finalize the contract’s exit arrangements.

  2. B

    Confirm that a supplier has already met the project’s acceptance criteria.

  3. C

    Learn what suppliers can provide and what lead times and prices are typical.

  4. D

    Replace the need to define project outcomes and quality requirements.

07
Choose all
1 point

A project is documenting an important procurement risk. Select all the information it should record to support managing that risk.

  1. A

    An assessment of likelihood and impact

  2. B

    A named owner

  3. C

    The supplier’s preferred meeting format

  4. D

    Warning signs

  5. E

    A response and contingency

08
Written response
1 point

An internal team estimates that developing a reporting tool will cost $60,000 and supporting it for two years will cost $20,000. What is the estimated whole-life cost in dollars? Enter the amount in dollars.

09
Fill in the blank
1 point

At procurement closeout, after acceptance and handover are addressed, the team should capture supplier performance and .

10
Choose one
1 point

A project’s scope is uncertain and likely to change during delivery. Which contract-planning approach best fits that situation?

  1. A

    Use a fixed price in every case because it removes all project risk.

  2. B

    Use a fixed price for uncertain work and omit cost controls.

  3. C

    Consider an arrangement suited to the uncertainty and strengthen cost controls.

  4. D

    Leave pricing and risk allocation undefined until the work is complete.

11
Choose all
1 point

A project depends on a long-lead specialist component from one supplier. Select all actions that could help reduce procurement risk.

  1. A

    Order long-lead items early.

  2. B

    Wait until the scheduled delivery date before checking on progress.

  3. C

    Qualify an alternate supplier.

  4. D

    Use staged acceptance testing.

  5. E

    Remove acceptance checks to avoid slowing delivery.

12
Choose one
1 point

After contract award, a supplier begins missing milestones. What should the project manager do?

  1. A

    Wait until contract closeout to review supplier performance.

  2. B

    Track performance regularly and use the agreed escalation route when problems arise.

  3. C

    Record only the supplier’s invoices and ignore delivery milestones.

  4. D

    Change acceptance criteria informally whenever a deliverable is late.

13
Open ended
1 point

A project needs specialized testing equipment, but its draft procurement schedule includes only the supplier’s shipping time. What important activities should the team add to the schedule, and why?

14
True or false
1 point

True or false: Procurement planning begins only when a team is ready to place an order and ends when the supplier delivers the goods.

  1. A

    True

  2. B

    False

15
Choose one
1 point

A project needs specialized testing equipment that must be installed and checked before use. Which approach is most appropriate when creating its procurement schedule?

  1. A

    Set the schedule based only on the equipment's shipping time, because other steps can happen after delivery.

  2. B

    Allow time for supplier research, a competitive request, technical evaluation, delivery, installation, and acceptance testing.

  3. C

    Schedule acceptance testing before inviting suppliers so that the selected supplier can plan around it.

  4. D

    Wait until the project is ready to place an order before researching suppliers or setting procurement dates.

16
Choose one
1 point

Two suppliers meet the minimum requirements, but one offers a lower price while the other has stronger delivery confidence and support. How should the project make a best-value selection?

  1. A

    Choose the lowest-priced supplier, regardless of technical fit or delivery confidence.

  2. B

    Choose the supplier with the highest technical score, even if it fails a mandatory requirement.

  3. C

    Compare suppliers against stated criteria and select the option that best balances price, quality, and delivery capability.

  4. D

    Choose the supplier with the most impressive proposal, without documenting how it meets the criteria.

17
Choose one
1 point

An internal team could develop a tool for $60,000 and support it for $20,000 over two years. A supplier charges $50,000, with another $35,000 for integration and two years of subscriptions. What is the soundest conclusion from comparing these estimated whole-life costs?

  1. A

    The internal option has the lower estimated whole-life cost, though other benefits and risks may still influence the decision.

  2. B

    The supplier option has the lower whole-life cost because its initial price is lower.

  3. C

    The options have equal whole-life costs because their initial prices are close.

  4. D

    The internal option should be selected automatically because cost is the only factor in a make-or-buy decision.

18
Choose one
1 point

A project is choosing a pricing approach for two procurements: one has a stable, clearly defined scope, while the other is likely to change as requirements develop. Which approach best fits the guidance?

  1. A

    Use a fixed price for uncertain, changing work because it removes the need to manage cost changes.

  2. B

    Consider a fixed price when the scope is well defined; use an arrangement suited to uncertainty for work likely to change.

  3. C

    Use the same pricing arrangement for every purchase to keep contract administration consistent.

  4. D

    Leave the pricing basis out of the contract until the supplier has completed the work.

19
Written response
1 point

A supplier receives these scores: technical fit, 4 with a weight of 40%; delivery confidence, 5 with a weight of 25%; relevant experience, 3 with a weight of 15%; and whole-life cost, 4 with a weight of 20%. What is the supplier’s weighted score on the 1–5 scale?

20
Written response
1 point

A project team will build its core system internally and purchase a specialist component from a supplier. What delivery approach is the team using?