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NEW QUESTION 24
Which of the following are typical social considerations throughout the contract life cycle? Select the TWO that apply.

• A. Managing waste
• B. Support small local businesses
• C. Health and safety
• D. Using recycled materials
• E. Minimizing use of non-renewable resources

Answer: B,C

Explanation:
The following are typical social criteria in procurement:
* Reducing unemployment
* Preventing the use of child labour
* Preventing discrimination on the grounds of race, religion, disability, sex or sexual orientation
* Encouraging good employment practice
* Reducing local unemployment
* Reducing social exclusion
* Promoting training opportunities for the young or disadvantaged
* Encouraging access to work for people with disabilities
Reference:
LO 3, AC 3.2

NEW QUESTION 25
When preparing through-life specification, which of the following requirements should procure-ment team define besides the physical asset? Select TWO that apply.

• A. Customer service
• B. Logistics and installation
• C. Available substitute
• D. Market analysis
• E. Objectives

Answer: A,B

Explanation:
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
With through-life management, buyer not only cares about the physical asset but also other factors like customer services and maintenance.
Reference:
LO 3, AC 3.2

NEW QUESTION 26
What is the document that defines the activities, deliverables and timelines a supplier must carry out during contract performance?

• A. Framework agreement
• B. Project initial document
• C. Statement of work
• D. Work instruction

Answer: C

Explanation:
Statement of Work (SoW) is the document that captures and defines all aspects of your project. You'll note the activities, deliverables and the timetable for the project. It's an extremely detailed document as it will lay the groundwork for the project plan.
Project Initial Document is an important document and should precede any specification writing project. It sets out the scope of the project and it is the team's mandate from senior management Work instructions are also called work guides, Standard Operating Procedures (SOPs), job aids or user manuals, depending on the situation. In any case, the purpose of work instructions is to clearly explain how a particular work task is performed.
Framework agreements are arrangements between one or more buyers and one or more suppliers that provide the terms governing contracts to be established for a certain period of time, in particular with regard to price and, where necessary, the quantity envisaged.
Reference:
LO 3, AC 3.1

NEW QUESTION 27
Apple's CPO is planning a budget for purchasing carbon-free aluminium next year. There are 27.4 tonnes of aluminum in stock, while Apple will need 200 tonnes for production next year and double inventory for production in the following year. How much aluminum will Apple need to purchase in next year?

• A. 227.4 tonnes
• B. 172.6 tonnes
• C. 117.8 tonnes
• D. 282.2 tonnes

Answer: A

Explanation:
The quantity of aluminium Apple needs to buy is calculated as follows:
Quantity needed for production + the inventory needed at the end of the year - inventory at start of the year That formula is quantified as: 200 + 54.8 - 27.4 = 227.4 Reference:
LO 2, AC 2.3

NEW QUESTION 28
Sabic is a petrochemical manufacturer. It wants to digitalise its operation and is looking for new IT system. The procurement manager approaches this matter with a through-life specification. He supposes that stating "good quality" in the specification will be enough for quality standard section. Is the procurement manager's thought appropriate?

• A. No, because "good quality" is very ambiguous for suppliers to identify Sabic's re-quirement
• B. Yes, because IT sector has its own standard of quality, therefore, suppliers may deliver good quality without any further Explanation:
• C. No, because "good quality" is an in-house jargon that suppliers are not familiar with
• D. Yes, because the specification should be concise.

Answer: A

Explanation:
Specifications for through-life contracts must be clear. They should use precise technical language and avoid any ambiguity as much as possible. In most cases, 'good quality' is ambiguous. The con-tractor doesn't know exactly which product the buying organisation needs and how to supply that product.
Other notices for description of requirement are:
- Short and simply description
- Clear definitions at the beginning of the documents
- Clarify abbreviations (if any), but abbreviations should be avoided as much as possible
- Avoid any 'slang'
- Use imperative forms of language whenever possible.
LO 3, AC 3.2

NEW QUESTION 29
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