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L4M4 Practice Exam Questions and Answers

Ethical and Responsible Sourcing

Last Update 4 days ago
Total Questions : 217

CIPS Level 4 Diploma in Procurement and Supply is stable now with all latest exam questions are added 4 days ago. Incorporating L4M4 practice exam questions into your study plan is more than just a preparation strategy.

L4M4 exam questions often include scenarios and problem-solving exercises that mirror real-world challenges. Working through L4M4 dumps allows you to practice pacing yourself, ensuring that you can complete all CIPS Level 4 Diploma in Procurement and Supply practice test within the allotted time frame.

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Question # 1

Ji Yuan is a procurement manager who is looking for a new supplier to complete reactive maintenance activities throughout his property portfolio. The reactive maintenance will include an array of plumbing tasks as well as fixing electrical items. Suppliers therefore need to be extremely skilled and knowledgeable about a variety of tasks. Ji Yuan has done some initial research and doesn't believe that there are many suppliers who can complete this type of contract. What type of tender should he use?

Options:

A.  

negotiated

B.  

restricted

C.  

open

D.  

competitive dialogue

Discussion 0
Question # 2

When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored. Which of the following questions would be assessing any of the ESC criteria?

    Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?

    How do you promote equal opportunity for your employees, customers, and suppliers?

    What is the annual turnover and profitability of your company?

    Does your company have an anti-bribery policy?

Options:

A.  

1 and 3

B.  

2 and 3

C.  

2 and 4

D.  

1 and 4

Discussion 0
Question # 3

What is the best way to prevent potential issues of conflicts of interest?

Options:

A.  

do not hire family members

B.  

openly declare potential conflicts

C.  

do not work with suppliers who have relationships with the procurement team

D.  

create a risk register

Discussion 0
Question # 4

Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?

Options:

A.  

No, because this timeframe will cause delays that are unacceptable to stakeholders

B.  

Yes, because it helps suppliers to plan and prioritise their work

C.  

No, because the complexity of the tender should inform the response timescale

D.  

Yes, because that timeframe is internationally recognised as being appropriate

Discussion 0
Question # 5

Other than price, what should a buyer consider when evaluating supplier quotations?

    Lead times

    Add-on costs

    Wastage rates

    Past performance

Options:

A.  

1, 2, and 4 only

B.  

1, 2, and 3 only

C.  

2, 3, and 4 only

D.  

1, 3, and 4 only

Discussion 0
Question # 6

Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down his supplier base and purchase from one supplier.

Which type of sourcing arrangement has Ramesh began?

Options:

A.  

dual

B.  

multiple

C.  

single

D.  

sole

Discussion 0
Question # 7

The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?

Options:

A.  

it allows transparency

B.  

it is time-consuming to create

C.  

it is easy to manipulate

D.  

it is hard to be objective

Discussion 0
Question # 8

In which instance would multiple sourcing be the most applicable approach?

Options:

A.  

Sourcing for the provision of a service, where close relationship management is required

B.  

Sourcing a specialised, unique component where the supplier's knowledge is key

C.  

Sourcing for high-cost, strategically important components

D.  

Sourcing for components required at short notice

Discussion 0
Question # 9

Many organisations prefer a multi-sourcing approach because of the advantages it provides. Which of the following might be an advantage of multi-sourcing?

Options:

A.  

It is the only approach that supports the open tendering process

B.  

It is the only approach that enables the buyer to isolate the best supplier from among many

C.  

It helps the buyer to increase stock varieties to avoid stock-outs

D.  

It increases process flexibility and switching using a range of approved suppliers

Discussion 0
Question # 10

Which award criteria can be applied when sourcing requirements from external suppliers?

Options:

A.  

Delivery promises of goods

B.  

Price and total life-cycle costs

C.  

Plans and manpower numbers

D.  

Understanding of supplier operations

Discussion 0
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