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NEW QUESTION 25 Describe three benefits of working cross-functionally Answer: ** Explanation: Working cross-functionally is the involvement of all departments involved in an organization to contribute knowledge, skills and innovation towards adding value of achieving the organization's strategic goal. All functions may include; procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization. When working cross functionally, members of the organization gives support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information.   **NEW QUESTION 26 Explain which company you would award the contract to base on the weighted score card in table below. Answer: ** Explanation: A weighted score card is a tool with a systematic and a fair process for selecting supplier, based on predetermined criteri a. This tool can help make the decision by presenting a fair display of how all suppliers did in the process. The values of these weights are based on their importance. The supplier with the highest score card is considered the most suitable to be awarded the contract. In the table above, cost is considered more than all other criteria. Contract length is the lowest which is weighted 2 Base on the weighted score card as presented above, company B scored 78 while company A and company C scored 65 and 63 respectively. Company A, having scored the highest (78) should be awarded the contract. * Refer to the question column for response   **NEW QUESTION 27 What is Iso 14001? Answer: ** Explanation: 14001 set out as international standards for an environmental management system.   **NEW QUESTION 28 Describe two negative factors associated with ordering excess inventory. Answer: ** Explanation: In the decision to not run out of supplies, organizations can anticipate a peak were by it products will be in a high demand or a period of scarcity of raw materials and may want to increase the in-ventory. However, if this forecast is not accurate, it may lead the organization to holding excess inventory. This can expose the organization to some negative factors. Acquisition Cost: The organization will incur an acquisition cost for the excess inventory which is inclusive of the cost of placing the order and the cost of purchasing the goods. Holding Cost: The organization will spend more money holding the stock, trying to keep it in good condition by providing the required light, temperature, skilled handlers and so on. Working Capital not adding value: This will off shoot the holding cost. Also valuable working capital in excess stock which in the time not adding value, can affect the liquidity of the business. This is also an opportunity cost and increase solvency.   **NEW QUESTION 29 What are the reasons that a contract can legally be terminated? Answer: ** Explanation: A contract is written or verbal agreement, made between two or more parties that are legally en-forceable. For a contract to be legally binding it must include intention of parties entering into the contracts. All parties must have the capacity to contract or be contracted. They must be of a sound mind, there should be a promise (offer) for performance from the other party and an exchange (consideration) of one thing for another within an agreement for contract to be binding, there must be an acceptance of the offeror's offer by the offeree. There are many reasons contract can legally be terminated, including non-performance by one or both parties, a significant change in the requirement. There are several reasons contract can legally be terminated, including non-performance by one or both parties; breach of material, failure to meet service level agreement, ethical breaches, a significant change in the requirement of either party caused by ethical change in the market, change in Demand, obsolescence, contract completion. The procurement professionals should get an exit strategy that should encourage a stress free disengagement should incase there are no profitable reason to continue with the contract.   **NEW QUESTION 30 ......