procurement

Submitted by ppalkonda1975 on Fri, 07/19/2013 - 02:17

 

Your company routinely gives out procurement contracts, and there is a dedicated procurement management division to handle this. Yet, it is observed that sometimes a few contracts had to be terminated. In this context, what could be the most common reason for such terminations? 
 
 
  Choice 1 The buyer does not meet the requirements of the contract
 
  Choice 2 The seller does not meet the requirements of the contract
 
  Choice 3 There could be payment or documentation issues resulting in arbitration
 
  Choice 4 Company objectives are different from those of procurement project
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vikula01

Fri, 07/19/2013 - 02:31

choice 1is not right - buyer gives requirements- choice 3 is claims resolution - choice 4 should come into picture when before contract- so I guess it should be choice 2

Please let me know

pmpnewster

Fri, 07/19/2013 - 02:35

Choice 2 seems most likely.

 

Regards.

 

ppalkonda1975

Fri, 07/19/2013 - 02:36

 I marked the same but it seems the answer is 4.....it is confusing sometimes with these mock exams...anyone with some explainations please?

elthox

Fri, 07/19/2013 - 06:36

  My point of view regarding Choice 4; think a new CEO has been appointed and a completely restructured board of directors who intend to apply new strategies and ongoing projects (procurements) seem out of date, So they decide to terminate them and start a new phase.

Anyway the question is stating "most common", which might be option 2.

cnppmp1's picture

cnppmp1

Fri, 07/19/2013 - 12:03

Option4:


The questions clearly says the your company has dedicated produrement management divison.


The information on buyer or seller not meeting the requirements is not enough to decide who is at fault. The arbitration is ruled out, since company is involved in giving out so many contracts and having dedicated procurement management in place, they wouldn't get into arbitration situation so many times and how about lesson learnt from previous arbitration..so this not possible.


 


So, the left out is company objectives are different.


 


Regards


CN Patil