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L4M6 Practice Exam Questions and Answers

Supplier Relationships

Last Update 4 days ago
Total Questions : 226

CIPS Level 4 Diploma in Procurement and Supply is stable now with all latest exam questions are added 4 days ago. Incorporating L4M6 practice exam questions into your study plan is more than just a preparation strategy.

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Question # 1

A category buyer, managing an outsourcing project, is aware of the commercially sensitive nature of the project and wishes to adopt an accommodating approach to managing conflict amongst key stakeholders. Is this the correct approach?

Options:

A.  

No, as the category manager has a low concern for others and a low concern for themselves

B.  

Yes, as the category manager has a high concern for others and a high concern for themselves

C.  

No, as the category manager has a high concern for themselves and low concern for others

D.  

Yes, as the category manager has a low concern for themselves but high concern for others

Discussion 0
Question # 2

When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?

Options:

A.  

ITT

B.  

PCR 2015

C.  

OJEU

D.  

TUPE

Discussion 0
Question # 3

A low level of trust between parties can often lead to partnership relationships being unsuccessful and failing. Which of the following supports the protection of commercially sensitive information between both parties and can help to retain trust?

Options:

A.  

A non-disclosure agreement

B.  

An authorised business case

C.  

Early supplier involvement

D.  

A business continuity plan

Discussion 0
Question # 4

George is running a competition to find a supplier to install solar panels on the roof of his factory. The energy this produces will power some of the machines. Cost is an important factor, but there are also other considerations that are important such as how long the solar panels will last, and the maintenance costs if they ever break. What should George do?

Options:

A.  

Use a weighted award criteria

B.  

Only invite suppliers he knows will be able to provide good quality products which won’t break

C.  

Run a separate tender for a company who can provide reactive maintenance to the solar panels

D.  

Evaluate the bids on price only as this is an important factor

Discussion 0
Question # 5

What is a disadvantage of including qualitative KPIs into a contract?

Options:

A.  

They can lead to poor supplier performance

B.  

They pull focus from the more important quantitative KPIs

C.  

They are hard to measure

D.  

They make the buyer seem weak

Discussion 0
Question # 6

Lee is a procurement manager at Real Pirates Ltd and he has a contract with Peg Leg Industries for the supply of fake, wooden legs for his team of Pirates. Real Pirates Ltd have been working with Peg Leg Industries for almost 10 years but recently Lee has discovered he will need to terminate the contract due to ‘Contract Frustration’. What could be the reason for this?

Options:

A.  

The supplier has committed a material breach

B.  

An unexpected incident has occurred beyond anyone’s control

C.  

The supplier has become insolvent

D.  

The supplier has leaked confidential information about Real Pirates Ltd to a competitor

Discussion 0
Question # 7

The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?

Options:

A.  

supplier positioning

B.  

cost analysis

C.  

relationship spectrum

D.  

cost engineering

Discussion 0
Question # 8

Which of the following are correct statements with regards to a joint venture and with regards to a strategic alliance? Select TWO that apply.

Options:

A.  

A strategic alliance creates a new company formed between the partners

B.  

A strategic alliance is managed by both partners

C.  

In a joint venture, a new company is formed between the partners

D.  

A joint venture is also known as vertical integration

E.  

A strategic alliance is a permanent arrangement

Discussion 0
Question # 9

A large construction group has a critical contract with a brick supplier. This represents high-value spend and the contract has a five-year duration. What type of commercial relationship would be the most appropriate?

Options:

A.  

Partnership

B.  

Transactional

C.  

Closer Tactical

D.  

Outsourcing

Discussion 0
Question # 10

Which of the following are not stages of team development? Select TWO.

Options:

A.  

Forming

B.  

Mourning

C.  

Achieving

D.  

Adjourning

E.  

Accepting

Discussion 0
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