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CIPS Supplier Relationships Sample Questions (Q41-Q46):

NEW QUESTION # 41
Which of the following are considered 'wastes' which can be removed from a business? Select THREE.

A. Over-processing
B. Inventory
C. Equity
D. Transportation
E. Stockout

Answer: A,B,D

Explanation:
The seven wastes (as defined by Taiichi Ohno) can be remembered as Tim Wood; transportation, inventory, motion, waiting, over-processing, over-production, defects. Some people add an S onto the end of Tim Wood to make Tim Woods (the s is for skills). In some modules of CIPS, they refer to 8 wastes and include skills, but in M6 they've only put the 7 on p.70.

NEW QUESTION # 42
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.

A. Early supplier involvement
B. No tender process
C. Supplier KPIs
D. Lower costs
E. No defined end period

Answer: A,B,E

Explanation:
The correct answers are; no tender process, early supplier involvement and no defined end-period. A partnership wouldn't automatically mean lower costs, and in a partnership the KPIs are usually a joint performance measurement rather than set to the supplier. For more information on the difference between partnerships and contractual relationships see p.124-5

NEW QUESTION # 43
Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?

A. Non-critical
B. Strategic
C. Bottleneck
D. Leverage

Answer: C

Explanation:
Bottleneck items pose high risk despite low spend. Effective management of these suppliers minimizes supply chain disruptions, aligning with portfolio analysis strategies.

NEW QUESTION # 44
Harry has just entered into a partnership with a key supplier. Although he is excited about the prospect, he thinks it's a good idea to set some goals and KPIs. Which of the following criteria should Harry use to decide if a KPI is appropriate?

A. Relatable, precise, and measurable
B. Significant, measurable and achievable
C. Time bound, difficult and relevant
D. Measurable, achievable and relevant

Answer: D

Explanation:
The correct answer is Measurable, achievable and relevant. This is from SMART KPIs on p. 151. Smart stands for specific, measurable, achievable, relevant, time-bound. In the exam they come up in different orders so be careful.

NEW QUESTION # 45
Which of the following documents would you expect a supplier to submit as part of a Request for Proposal? Select THREE

A. Risk Assessments
B. Method Statements
C. Liquidity Ratio
D. Full pricing information
E. Gearing Ratio

Answer: A,B,D

Explanation:
You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you're procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn't form part of a RFP. See p.76

NEW QUESTION # 46
......

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L4M6 Test Torrent & L4M6 Reliable Braindumps & L4M6 Training Questions

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CIPS Supplier Relationships Sample Questions (Q41-Q46):

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