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Pass the CIPS Level 4 Diploma in Procurement and Supply L4M6 Questions and answers with ExamsMirror

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Viewing questions 71-80 out of questions

Questions # 71:

Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.

Options:

The buyer has a high spend with the supplier

There are many suppliers in the market

The product is critical for the buyer

The product is a commodity

The product is technically complex

The supplier provides the product to a buyer’s competitor

Questions # 72:

A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers. What would be the most beneficial way for them to initially narrow down the supply options?

Options:

Look at lowest-cost suppliers only

Predefine minimum standards suppliers must meet

Go only to companies they have bought other products from

Preselect companies who have the largest market share

Questions # 73:

A medical consumables buyer has adopted a close relationship approach with their suppliers that are considered to be complicated, technical suppliers. Is this the right approach?

Options:

Yes, as the items are of high financial risk

No, as there is often a supply risk with items offered

Yes, as all the items supplied are off the shelf

No, as there are only a small number of suppliers in the marketplace

Questions # 74:

Early Supplier Involvement can be described as a collaborative relationship between a buyer and a supplier to develop a new project. Handfield’s model describes four different levels of supplier involvement ranging from none to ‘black box’ (which is when the design is primarily driven by the supplier. What other level features on this model?

Options:

Blue Box – when the buyer creates the product without input from the supplier

Red Box- when the supplier provides legal advice to the buyer on areas such as copywrite

White Box – when there is informal integration and the buyer consults with a supplier on a design

Grey Box – when the involvement is buyer driven

Questions # 75:

Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.

Options:

You ordered 10,000 items instead of 1,000

One of the contracted parties has clearly failed to perform its duties

There has been a serious breach of contract terms

Your internal stakeholder requested the wrong items

Your MRP system placed a replenishment order that you do not need

Questions # 76:

A buying organisation has decided to terminate its partnership with its supplier (FGH). For some time, the supplier has not been proactive in advising when deliveries will be late, which has frustrated the buying organisation. The supply market has historically been limited to a small number of suppliers, but new suppliers have decided that the market is attractive. The buying organisation is now considering setting up a partnership with a new supplier (XYZ) who has recently entered the market. What are the reasons for the buying organisation deciding to terminate its relationship with supplier FGH? Select TWO that apply.

Options:

Changes in the composition of the supply market

Levels of supply availability in the market have decreased

The buyer no longer believes in the value of partnership relationships

The supplier has decided that it no longer wishes to keep the buying organisation as a customer

Poor communication by the supplier

Questions # 77:

A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?

Options:

No, it is an example of a less time-intensive partnership

No, as there is a short-term focus on the relationship

Yes, as this is an example of a target costing approach

Yes, because it includes elements of joint product development

Questions # 78:

Which of the following are advantages of partnering?

Options:

Supply chain consolidation

Continual improvement

Hard to displace

Prioritization of transactions

Questions # 79:

In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity. What does PIN stand for?

Options:

Prior Information Notice

Procurement Information Number

Procurement Identification Number

Possibilities Identified Notice

Questions # 80:

Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money. What should Fred do?