3. Sourcing
Procurement Strategy — Quiz
Test your understanding of procurement strategy with 5 practice questions.
Practice Questions
Question 1
Which procurement structure combines centralized policy-setting with decentralized execution at the business-unit level?
Question 2
According to the Kraljic matrix, items are classified based on which two dimensions?
Question 3
A company orders 200 units of a component at \50 each and has an annual carrying cost rate of \20\%. Using the average inventory level of \$Q/2\$, what is the annual inventory holding cost?
Question 4
What best describes the primary difference between strategic sourcing and tactical procurement?
Question 5
What is the primary goal of a risk-based sourcing strategy within strategic sourcing?