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CIPS L4M6 Exam Syllabus Topics:
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CIPS Supplier Relationships Sample Questions (Q72-Q77):
NEW QUESTION # 72
A doctor's surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company. What is the Manager's main motivation for doing this?
- A. This will result in economies of scale
- B. The supplier is an expert in their field
- C. This will free-up internal resources
- D. This will result in cost-savings
Answer: B
Explanation:
The reason for outsourcing in this example is that the IT firm is an expert in their field. The requirement is complex and important and this is the reason why it is not being delivered in-house. The other answers given CAN be reasons for out-sourcing, but don't relate to this example. For a full list of reasons a company could use outsourcing see p. 4-5
NEW QUESTION # 73
Which of the following macro-environmental factors can affect supply chains?
- A. political, economic and social
- B. environmental, ergonomic and social
- C. environmental, ethical and cost
- D. social, economic and cost
Answer: A
Explanation:
STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44. Note in the exam they won't necessarily be given in this order.
NEW QUESTION # 74
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket's profitability. What should Sandra do first?
- A. Give written notice to the supplier of plans to terminate
- B. Obtain business approval to terminate the contract
- C. Review the market and look for an alternative supplier
- D. Develop an exit strategy
Answer: B
Explanation:
The first step is to obtain business approval to terminate. If Senior Management don't give approval, then the rest of the stages can't happen and Sandra will be stuck with her current banana supplier. There's a good diagram on p.109 detailing the steps to supplier termination.
NEW QUESTION # 75
Tim manages the procurement department at a large retailer. He wants to ensure that his team are achieving value for money in their procurement activities. Which of the following should Tim set up?
- A. Audit
- B. Contract
- C. ITT
- D. Framework
Answer: A
Explanation:
Tim should do an audit. P.71 of the textbook says "to ensure that a procurement department is achieving value for money, an audit should be undertaken"
NEW QUESTION # 76
Which of the following are elements of a business that can develop a company's competitive advantage? Select THREE.
- A. human resource management
- B. natural resources
- C. cost focus
- D. cost leadership
- E. organisation culture
Answer: A,B,E
Explanation:
This is one of those questions you have to read carefully- it asks for 'elements of a business'. Cost focus and cost leadership are ways a company can improve their competitive advantage, but they're not elements of a business. The other three options are. Porter created a list of elements of a business that can help a company's competitive advantage- these can be found on p.33-34
NEW QUESTION # 77
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