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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 # 61

Which of the following provides in-depth detail for both functional and non-functional require-ments and covers assumptions, constraints, performance, dimensions, weights and reliability of a product?

Options:

A.  

Performance specification

B.  

Tolerance

C.  

Statement of work

D.  

Design specification

Discussion 0
Question # 62

Which of the following is a social factor that a buyer should take into account when reviewing responses to a specification?

Options:

A.  

The age of the machinery being used by the supplier

B.  

The emissions produced by the supplier’s machinery

C.  

The available labour in the supplier’s geographic location

D.  

The logistical infrastructure available to the supplier

Discussion 0
Question # 63

Honda of America Manufacturing is a well established automobile manufacturer. It purchases tens of thousands of materials and parts from suppliers, however, only few of them are strategic. To these suppliers, Honda's procurement manager requires them to send details of labour, materials, overhead cost and profit. However, the suppliers are reluctant to submit such confidential infor-mation. Is the procurement manager’s action appropriate?

Options:

A.  

Yes, because the procurement manager can get a good insight from the market

B.  

No, because no suppliers are willing to show sensitive information on their costs and profit.

C.  

Yes, because strategies can be introduced for reducing cost and improving the supplier relationships.

D.  

No, because procurement manager should conduct life-cycle analysis

Discussion 0
Question # 64

Which of the following can directly affect labour variance? Select TWO that apply:

Options:

A.  

Wage rate per hour

B.  

Inflation

C.  

Company's budget

D.  

Overhead expenditure

E.  

Overtime

Discussion 0
Question # 65

Which of the following may allow suppliers free to choose the materials, manufacturing process or delivery process?

Options:

A.  

Performance specification

B.  

Design specification

C.  

Technical specifications

D.  

Conformance specification

Discussion 0
Question # 66

Which of the following would positively affect a buyer’s company cash flow? Select TWO that apply.

Options:

A.  

The bank grants a loan to the buyer’s company

B.  

Payment of dividends to the company’s shareholders

C.  

A supplier reduces payment terms to payment on receipt

D.  

A customer agrees to pay the buyer’s company upon purchase

E.  

The buyer’s company offers sales discounts and promotions

Discussion 0
Question # 67

In 2016, ANA Airlines had to cancel some of its flight. The airline said it had discovered the cracks to the jet engine turbine blades. What should ANA procurement team do next to solve this problem?

Options:

A.  

Collect data to identify the root cause

B.  

Generate options addressing the issue

C.  

Analyse the situation and draw conclusion

D.  

Assess the risks

E.  

Define the ideal solution

Discussion 0
Question # 68

What criteria can be applied in the production of a business case?

Options:

A.  

Questions, price, and evaluation

B.  

Suggestions, feedback, and forecast

C.  

Plans, delivery, and design

D.  

Costs, benefits, and options

Discussion 0
Question # 69

Datong is a defence and law enforcement equipment supplier. They are developing new product but largely concerns about the detailed specifications of components and the capability of supply market. Which of the following approach should Datong adopt in order to optimise the specification and shorten time to market?

Options:

A.  

Request for quotation from potential suppliers

B.  

Invite the supplier to tendering process

C.  

Early supplier involvement

D.  

Control the budget tightly

Discussion 0
Question # 70

Which of the following is the technology that disrupts traditional retail?

Options:

A.  

Self-Driving Cars

B.  

Blockchain

C.  

E-commerce

D.  

Robotics

Discussion 0
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