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NEW QUESTION 34 Which of the following problems may be identified as open-ended problems? Select TWO that apply:

• A. A cyber attack takes down whole company's IT system
• B. Shortage of key medicines in healthcare industry
• C. The suppliers don't comply with the company's policy on underage labour.
• D. Logistics costs incur a large portion in wholesale prices
• E. Engine failures cause flight cancellations.

Answer: C,D Explanation: Open-ended problem is something stopping the achievement of an objective or blocking progress. To solve this type of problems, procurement professional should find a way to unblock the block-age. In the above question, high logistics cost is an obstacle to cost cutting objective while suppli-er's incompliance prevents the company to achieve its sustainable objective. Reference: LO 1, AC 1.1   NEW QUESTION 35 Builder Inc is a rapidly expanding business in construction sector. Due to an increase in projects, it cannot manage the flow of materials by Excel spreadsheets but by more dedicated software. Who would be a key internal stakeholder in defining software compatibility with company's current system?

• A. IT team
• B. Executive team
• C. Procurement team
• D. Finance team

Answer: A Explanation: Internal stakeholders may contribute to defining needs and drafting the specification by using their technical expertise. In this scenario, IT team may consult procurement team on the technical specification of the software, including compatibility with company's current IT system. Reference: LO 3, AC 3.4   NEW QUESTION 36 Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's sup-plies. After analysing, Bob realises that a group of low value products is sourced from a tiny geo-graphical area which is prone to flooding. What would be the best strategy to manage this category of products?

• A. Form partnership relationship with the current supplier
• B. Assign some of procurement jobs to user department
• C. Source this group of products from only one supplier
• D. Find an alternative source to secure supply

Answer: D Explanation: In the scenario, the products have low value and high risk of supply. This group is known as bottleneck or critical in Kraljic's portfolio matrix. The objective for such items would be securing the supply. The company can achieve this goal by 'making' the products themselves, or finding an alternative option. Reference: LO 2, AC 2.1   NEW QUESTION 37 ......