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100% Pass Quiz CIPS - Valid L4M6 - CIPS Supplier Relationships Exam Flashcards

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CIPS Supplier Relationships Sample Questions (Q10-Q15):

NEW QUESTION # 10
Agile Cars Ltd is creating a 'lean' business model which involves receiving deliveries of components only when they are required. Which of the following 'wastes' is being removed from the business?

A. Inventory
B. Transportation
C. Defects
D. Over-production

Answer: A

Explanation:
This would reduce inventory (holding stock). Inventory is considered a business waste because it costs money to store stuff (e.g. paying the rent on a warehouse, electricity to light it up etc). If you can reduce the need to store materials and components on site- you reduce costs. You also save time because you get deliveries when you need them- you don't need to allow for staff unpacking things, storing them away, then going back to them later when they need them. For more information on the 7 Business Wastes see p.70. This comes up in a couple of modules, so it's worth remembering.

NEW QUESTION # 11
Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very few suppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited - what type of supplier is Friendly Flour Limited to Janet?

A. bottleneck
B. strategic
C. leverage
D. routine

Answer: B

Explanation:
Friendly Flour Ltd is a strategic supplier; this is a critical supplier, responsible for core products. They represent a high risk impact and a high cost impact. This is the top-right hand corner of the Kraljic matrix.
There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix (see p.20)

NEW QUESTION # 12
Which of the following are the stages of team development?

A. Forming, storming, norming, performing
B. Beginning, working, reviewing, performing
C. Starting, forming, benchmarking, performing
D. Introducing, forming, managing, performing

Answer: A

Explanation:
The stages of team development as defined by Tuckman include forming, storming, norming, and performing.
These stages reflect how teams evolve and mature through collaboration and problem-solving.

NEW QUESTION # 13
A company purchases products from a supplier that falls into the 'strategic' segment of the supply positioning grid. They are drawing up a formal partnership agreement with the supplier. The supplier views the company as core to their business. What would be an important clause to include in the agreement to help make sure the partnership worked in a fully collaborative way?

A. Liquidated damages
B. Force majeure
C. Continuous improvement
D. Time of the essence

Answer: C

Explanation:
Comprehensive and Detailed Explanation:
In strategic partnerships, including a continuous improvement clause is vital. This clause commits both parties to ongoing efforts to enhance processes, reduce costs, and improve quality over time. Such a commitment ensures that the partnership remains dynamic and responsive to changes, fostering long-term collaboration and mutual benefit.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION # 14
In public sector procurement, according to EU legislation, certain items must be procured via open- competition. What type of items are these?

A. Items of strategic importance
B. Items that are imported from outside the EU
C. Items that are produced by lots of suppliers
D. Items of high value

Answer: D

Explanation:
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'.
These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75

NEW QUESTION # 15
......

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