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L4M5 Dumps With Exact Questions and Answers

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L4M5 Questions and Answers

Question # 1

JCB is a large manufacturer of heavy machinery. The CPO is going to a negotiation with a Chinese supplier about procuring some major components. He is wondering about balance of power in the negotiation. Which of the following micro factors are most likely to shift the balance of power towards the buying organisation in this commercial negotiation? Select TWO that apply

A.

Buyers purchase in small volumes

B.

Suppliers are more concentrated than buyer

C.

Eruption of epidemic in supply market

D.

JCB's switching costs are low

E.

These components are highly standardised

Question # 2

Which of the following is the most appropriate pricing arrangement in contracts where major inputs are commodities?

A.

Price adjustment mechanism

B.

Cost reimbursable pricingarrangement

C.

Standard schedule of rates

D.

Fixed pricing arrangement

Question # 3

IHL has beensupplying to XYZ Ltd for months. XYZ Ltd procurement manager Diana realises that the IHL's input prices are dropping and this is a good time to re-negotiate the price of the contract. She invites IHL representative to XYZ headquarter to make a bargain on the current price. At the opening stage of the negotiation, Diana requests a 10% reduction in price with an increase in volume purchased.

Is Diana's action appropriate in the opening phase?

A.

Yes, because the negotiation should be done as quick as possible

B.

Yes, because Diana's proposal is a fair trade for both parties

C.

No, because Diana should state exactly the increasing quantity

D.

No, because Diana has put the markers down too soon

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