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L4M6 Practice Questions

Supplier Relationships

Last Update 10 hours ago
Total Questions : 263

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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 L4M6. Use this test to pinpoint which areas you need to focus your study on.

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Question # 41

What is the correct order for the 5 stages of team development?

Options:

A.  

Forming, storming, performing, adjourning, norming

B.  

Storming, norming, adjourning, performing, forming

C.  

Norming, adjourning, storming, performing, forming

D.  

Forming, storming, norming, performing, adjourning

Discussion 0
Question # 42

Innovation is a key consideration when entering into a partnership. Is this statement true?

Options:

A.  

Yes- joint innovation projects are often a strong motivation for entering into a partnership

B.  

Yes- innovation is the only reason to enter into a partnership

C.  

No- the key consideration when entering a partnership is cost reduction

D.  

No- innovation is best achieved in a contractual relationship where KPIs can be monitored closely.

Discussion 0
Question # 43

Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

Options:

A.  

yes- it is important to develop all relationships

B.  

yes- this will improve efficiencies for the buyer

C.  

no- supplier development should only be done with strategic suppliers

D.  

no- supplier development should only be done with tactical suppliers

Discussion 0
Question # 44

Which of the following characteristics are typical of a partnership approach relationship between a buyer and supplier?

    Win:Lose (distributive) style negotiations

    Joint key performance indicator (KPI) measurement

    Definitive contract end period

    Transparent information sharing

Options:

A.  

1 and 2 only

B.  

2 and 3 only

C.  

1 and 4 only

D.  

2 and 4 only

Discussion 0
Question # 45

A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?

Options:

A.  

No, it is an example of a less time-intensive partnership

B.  

No, as there is a short-term focus on the relationship

C.  

Yes, as this is an example of a target costing approach

D.  

Yes, because it includes elements of joint product development

Discussion 0
Question # 46

Matt Blanche is the manager of a procurement team. Two high-performing individuals in the team have regular conflicts between them. Which of the following resolutions would be appropriate to resolve the conflict? Select all that apply.

Options:

A.  

Set up individual meetings with the staff members to see if the issues are personal or work-related

B.  

Set up a meeting with the individuals and set mutual targets for both of them

C.  

Move one of the staff members to another team

D.  

Avoid the issues and let the staff members resolve their differences themselves

Discussion 0
Question # 47

A procurement category manager has been asked to advise the project team on the appropriate selection and awarding process for a complex procurement project in a multi-geographical organisation. It is likely the specification will be updated during the process, and several phases of negotiation will be required throughout. This will include final negotiations with the winning bidder. The team are therefore aware it will be a time-consuming project. Which process should be advised?

Options:

A.  

Open tender

B.  

Restricted tender

C.  

Competitive dialogue

D.  

Request for quotation

Discussion 0
Question # 48

In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardized. Is this TRUE or FALSE?

Options:

A.  

False, the product is in a supply market which is highly complex and the product is of low importance

B.  

False, the product is in a supply market which is highly complex and the product is of high importance

C.  

True, the product is in a supply market which is of low complexity and the product is of high importance

D.  

True, the product is in a supply market which is of low complexity and the product is of low importance

Discussion 0
Question # 49

Which of the following are advantages for the buyer of entering into a partnership? Select TWO.

Options:

A.  

They are likely to be able to gain price stability

B.  

There may be greater continuity of supply

C.  

They will gain an increased volume of business

D.  

The supplier may become complacent

Discussion 0
Question # 50

Which of the following are correct statements with regards to a joint venture and with regards to a strategic alliance? Select TWO that apply.

Options:

A.  

A strategic alliance creates a new company formed between the partners

B.  

A strategic alliance is managed by both partners

C.  

In a joint venture, a new company is formed between the partners

D.  

A joint venture is also known as vertical integration

E.  

A strategic alliance is a permanent arrangement

Discussion 0
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