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L4M2 Defining Business Needs is now Stable and With Pass Result | Test Your Knowledge for Free

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Defining Business Needs

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Total Questions : 303

Dive into our fully updated and stable L4M2 practice test platform, featuring all the latest CIPS Level 4 Diploma in Procurement and Supply exam questions added this week. Our preparation tool is more than just a CIPS study aid; it's a strategic advantage.

Our free CIPS Level 4 Diploma in Procurement and Supply practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about L4M2. Use this test to pinpoint which areas you need to focus your study on.

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Question # 21

Facing fiercer competition at home and abroad, IKEA, the leading furniture retailer, needs to im-prove its competitiveness. In order to do this, IKEA must decrease operating costs and improve quality of current and new retail stores. The company establishes a project team. The job of the team is to collect data on performance from multiple stores in several countries, then select the best performing one. The team will work closely with best performing store and study its processes. After the research, the team will recommend best practices to other retail stores. IKEA management can also apply these practices to new stores in the future. Which of the following correctly describe the process undertaken by IKEA project team?

Options:

A.  

Internal benchmarking

B.  

Competitive benchmarking

C.  

Internal audit

D.  

Site visit

Discussion 0
Question # 22

Halfords is a major bicycle and car parts retailer with long history in the market. Its suppliers are plentiful and there is no threat of forward integration. Some other smaller retailers are applying 3D-printing technology to make personalized bicycle parts but their market share is relatively low. 3D-printing technology is an example of which competitive force?

Options:

A.  

Bargaining power of buyer

B.  

Threat of substitute

C.  

Rivalry within the industry

D.  

New entrants may enter the market

Discussion 0
Question # 23

An organisation's procurement team is in the best position to make the following contribution to the specification development process, to ...

Options:

A.  

Ensure that the views of the suppliers are given priority over those of other stakeholders

B.  

Provide the supply market perspectives, in terms of the potential suppliers and alternative solutions

C.  

Argue in favour of using conformance specifications, instead of performance specifications

D.  

Provide advice that the economic order quantity is the most important factor in the drafting of specifications

Discussion 0
Question # 24

Which of the following is true in relation to estimating the costs associated with whole life asset management?

Options:

A.  

The supplier's quoted price represents the true end final cost of purchase

B.  

Every purchase represents an 'iceberg of costs of which the price it the 'tip'

C.  

The supplier's quoted price includes direct costs only and therefore other costs should be estimated

D.  

All quoted prices are exaggerated and therefore discounts must be demanded to save costs

Discussion 0
Question # 25

Which of the following indicates types of waste that procurement department concentrates on when adopting Lean methods?

Options:

A.  

DOWNTIME

B.  

VA/VE

C.  

OWN-IT

D.  

SCAMPER

Discussion 0
Question # 26

Which of the following problems may be identified as open-ended problems? Select TWO that apply:

Options:

A.  

Shortage of key medicines in healthcare industry

B.  

A cyber attack takes down whole company’s IT system

C.  

Engine failures cause flight cancellations.

D.  

Logistics costs incur a large portion in wholesale prices

E.  

The suppliers don’t comply with the company’s policy on underage labour.

Discussion 0
Question # 27

Sam has recently joined Spahn Farm Foods (SFF) as a procurement manager. She has instructed her team to develop and distribute a standard specification template for business stakeholders to use when requesting purchases. How would this benefit SFF?

Options:

A.  

Use of a standard template would prevent fraudulent purchases from being made by stakeholders

B.  

Use of a standard template would allow buyers to quickly identify any missing information

C.  

Use of a standard template would reduce the amount of negotiation required on the terms and conditions of the contract

D.  

Use of a standard template would mean suppliers will be more willing to negotiate on the cost of the product

Discussion 0
Question # 28

At which stage of product life cycle, price competition between sellers will be the most intense?

Options:

A.  

Growth stage

B.  

Introductory stage

C.  

Maturity stage

D.  

Decline stage

Discussion 0
Question # 29

Which of the following is the process for improving the value of a new product or service?

Options:

A.  

Value engineering

B.  

Porter's Five Forces

C.  

Planning and design

D.  

Value analysis

Discussion 0
Question # 30

The procurement team of a global supermarket has created a business case for a corporate social responsibility (CSR) sourcing strategy to meet the corporate objective of sustainability. This would require sourcing only from suppliers who meet ethical standards, a reduction in plastic, and using recycled material where possible. Which of the following business benefits would be mentioned in the business case? Select TWO that apply:

Options:

A.  

Fulfilment of a business objective

B.  

Increased capacity

C.  

Leverage of technology

D.  

Improved brand equity

E.  

Reduced cost

Discussion 0
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