CIPS L4M4 Latest Test Question & L4M4 Latest Dumps

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CIPS Ethical and Responsible Sourcing Sample Questions (Q153-Q158):

NEW QUESTION # 153
Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these. Which of the following items would be C category items?

A. strategic sourcing
B. high value items
C. one-off purchases
D. tail spent

Answer: D

Explanation:
The C category is the 'tail spend' - it represents a large number of suppliers of small value items.
I recommend giving this a read ABC Classification & ABC Method | CIPS

NEW QUESTION # 154
Why would you use a credit score to appraise a supplier?

A. to find out if the supplier has any unethical business practices
B. to understand if their prices reflect market value
C. to understand the level of risk the supplier poses to your organisation
D. to find out how much money the supplier has in the bank

Answer: C

Explanation:
A credit rating generates a score which reflects 'the level of risk an organisation poses when dealing with other businesses'. It's saying how risky it is to loan them money or do business with them by looking at how good they are at paying people. So a high credit rating will say they're good at paying back their loans and paying their suppliers on time. A poor credit rating will say they often miss payments or pay late.
A credit rating will not tell you how much money they have, or details on their prices. Credit scores looks at purely financial data so wouldn't help you analyse whether their business practices are ethical or not.

NEW QUESTION # 155
When selecting a supplier on technical merit, its important that the supplier is a good 'functional fit' for the organisation. What is meant by 'functional fit'?

A. the supplier is able to adhere to the same ethical standards
B. the supplier makes a similar profit to that of the buyer
C. the supplier shares a common supply chain
D. the supplier is able to work at the same technical level as the buyer

Answer: D

Explanation:
The correct answer is 'the supplier is able to work at the same technical level as the buyer'. It's aboutbeing able to integrate the businesses together in terms of IT systems and such like.

NEW QUESTION # 156
When conducting an ABC analysis- what category of items and type of suppliers would you typically find in the A category?

A. low value items, transactional suppliers
B. high value items, transactional suppliers
C. low value items, strategic suppliers
D. high value items, strategic suppliers

Answer: D

Explanation:
A Category spend is high value and strategic suppliers. C category is low value, high volume of spend aka tail spend. The bits in the middle are B category.
For example when you have a baby you have to buy lots of stuff for it. Your A spend is the big, important and expensive purchases like the pram, cot, carseat. You spend a lot of time in this category because they're important purchases you want to get right. The Tail Spend / C are all the little bits like nappies, baby shampoo, sippy cups. The B category are the bits in between - the purchases are kinda important but aren't as strategic or important as A category. Toys may fall into this category.

NEW QUESTION # 157
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms. What is the purpose of these rules?

A. to describe the point at which an item is considered delivered
B. to ensure buyers and suppliers pay the correct level of tax on imported and exported goods
C. to provide internationally recognized product descriptions
D. to state which products can be exported from which countries

Answer: A

Explanation:
Incoterms describe the point at which an item is considered 'delivered' and explains who has the risk of what during the transport of the goods.

NEW QUESTION # 158
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CIPS L4M4 Latest Test Question & L4M4 Latest Dumps

L4M4 Latest Dumps | L4M4 Valid Exam Tutorial

CIPS Ethical and Responsible Sourcing Sample Questions (Q153-Q158):

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