L4M2 Practice Questions
Defining Business Needs
Last Update 10 hours ago
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.
A procurement manager is supporting operational colleagues in writing a specification for an existing product. They analyse existing functions, processes, costs, and value added. What is this an example of?
A company has installed a new piece of capital equipment but needs to arrange a maintenance contract for three years. The company wants to know as accurately as possible what this price will be for the full contract. What would be an appropriate type of pricing mechanism to use when asking suppliers to quote prices?
Buyers in the same industry with the same understanding of relative value and price may still make different decisions about whether to switch. Which of the following factors may prompt a buying organization to incline toward substitute products?
1. There is potential for backward integration
2. Access to financial resources
3. The switching cost is high
4. The substitute fits organisation’s strategy
British Steel needs to source a set of instruments that will improve quality of steel. Without these instruments British Steel will loss control of the temperature. The bucket may freeze up, or if it is too hot it leaks out of the casting process, damaging the machine. There is limited supply on the market and quality varies greatly. Which of the following will be the most appropriate managing approach to procure these items?
A buyer may consider switching from one product or service to another, or from one supplier to another. Which of the following options are a type of switching cost?
Inflation cost
Historical cost
Retraining cost
Modification cost
Which of the following are potential advantages of using a product performance specification?
It reduces the need for the buyer to produce a detailed design
It can widen the potential supply base
The buyer can specify the product's actual design in detail
Products are provided using the buyer's methodology
What is the purpose of sending value engineering analysis to external suppliers?
