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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

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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 # 41

What issue is a buyer most likely to experience if the technical specification sent to suppliers as part of a Request For Quotation (RFQ) is insufficient?

Options:

A.  

The buyer will receive quotes at different times from suppliers, which will require greater coordination with other members of the sourcing team

B.  

The buyer will receive costs from suppliers in different formats, which will make it difficult to compare costs on a like-for-like basis

C.  

The buyer will not be able to compare different suppliers' costs directly as the suppliers will have had to make assumptions on the specification

D.  

The buyer will need to work with their finance colleagues and business stakeholders to adjust the budget available for the project

Discussion 0
Question # 42

Dana is an automobile manufacturer. It has a new electrification strategy that aims at making eco-friendly electric pick-up trucks. To implement this strategy, the procurement department must source new categories of parts that make motors, sensors, solenoids and stators. He starts to analyse the market by identifying specific supply market segments for those parts and finding suppliers who have the best capabilities in those segment. He intends to segment the market based on specific features of the products. Which variable is used by Dana procurement manager to shape and manage supply market?

Options:

A.  

Buyer segments

B.  

Channel segments

C.  

Geographical segments

D.  

Product segments

Discussion 0
Question # 43

A company is analysing its existing product's components and aims at reducing costs without damaging customer value proposition. They want to check which components are critical and which are unnecessary. Which of the following should be adopted by the company?

Options:

A.  

Under specification

B.  

Value engineering

C.  

Value analysis

D.  

Variety reduction

Discussion 0
Question # 44

Which of the following are typical benefits of through-life asset management to buying organisa-tion? Select the TWO that apply.

Options:

A.  

Shorter specifications

B.  

Lower risks as there are many suppliers accountable for costs and service over the life of the asset

C.  

Lower total cost of ownership

D.  

Greater supplier's bargaining power

E.  

Better capability of supplier over time

Discussion 0
Question # 45

Which of the following agencies can produce a technical standard?

Options:

A.  

House of Lords

B.  

Marketing department

C.  

BSI

D.  

Department of State

Discussion 0
Question # 46

Which of the following are 'secondary sources' of data for costs and prices?

Industry press

Published economic indices

Trade fairs

Buyer's database on market data

Options:

A.  

1 and 2 only

B.  

2 and 3 only

C.  

1 and 4 only

D.  

3 and 4 only

Discussion 0
Question # 47

Which of the following are recognised competitive strategies?

1. Winning new business at all cost

2. Getting more customers’ attention

3. Creating stand-out products and brands

4. Focusing on niche market

5. Acquiring competitors

Options:

A.  

3 and 4 only

B.  

3 and 5 only

C.  

1 and 2 only

D.  

2 and 5 only

Discussion 0
Question # 48

Thani Ltd is a fast growing logistics company with a fleet of 20 tractors. To meet Net Zero objec-tive, the company needs to electrify its fleet. Angelica is assigned to investigate the market price of electrifying services. After the investigation, she realises that the current market price is very expensive and unsustainable for her company. She decides to break down the costs before negotiating with the suppliers. Which internal stakeholders may help Angelica estimate the breakdown of costs? Select TWO that apply.

Options:

A.  

Sales and Marketing department

B.  

Engineering department

C.  

Finance department

D.  

Commercial agency

E.  

Suppliers

Discussion 0
Question # 49

Gaskins Caskets (GC) is a manufacturing company that wants to identify new suppliers for a number of current parts. GC no longer has technical drawings for the parts and none of the engineers currently working for them have enough knowledge of the parts to write a specification. What could GC do to get accurate pricing from suppliers for these parts to compare to the existing parts?

Options:

A.  

GC's engineers could estimate the specification and drawings that are sent to prospective suppliers

B.  

GC could send samples of the parts to prospective suppliers as part of the request for quotation

C.  

GC could communicate a cost to the suppliers that must be met regardless of the final specification

D.  

GC could allow suppliers to develop and use their own specification as part of their cost proposal

Discussion 0
Question # 50

Which of the following are typically reasons why an organisation implements value analysis? Select TWO that apply:

Options:

A.  

To determine the value of each component used

B.  

To decide whether there will be sufficient surplus funds to reinvest in the business

C.  

To shape and manage supply market

D.  

To provide an outline business case for the specification

E.  

To find cost reduction opportunities by optimising the components used

Discussion 0
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