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Download CIPS Supplier Relationships Exam Dumps
NEW QUESTION 20
Which of the following relationship types are characterised by low levels of trust? Select TWO options
- A. Arm's Length
- B. Single- Sourced
- C. Adversarial
(Correct) - D. Partnership
- E. Outsourced
Answer: A,C
Explanation:
Adversarial and Arm's Length relationships have low levels of trust. Single Source, Partnership and Outsourcing require high level of trust. See p.5 for the Supplier Relationship Spectrum
NEW QUESTION 21
Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy's first step?
- A. Run a restricted competition- send out a RFI
- B. Run an open competition - send out a RFQ
- C. Run a restricted competition - send out a PQQ
- D. Run an open competition - send out an ITT
Answer: C
Explanation:
The correct answer is 'run a restricted competition - send out a PQQ'. This Question: tests both your understanding of when to run open and restricted competitions (which is explained on p.75) and your understanding of tender documents. Mandy should run a restricted competition- there are a lot of options in the marketplace and this will allow her to pre-qualify those who best suit her requirements. Running an open competition when there are lots of suppliers would be too time-consuming- you need a way of making a short-list. When you run a restricted competition, the first stage is sending out a PQQ- pre-qualification questionnaire; this document is sent to suppliers asking for necessary information to support their qualification as an approved supplier.
NEW QUESTION 22
Which of the following would not affect rivalry in a marketplace? Select TWO.
- A. legislative changes
- B. exit barriers
- C. supply chain disruption
- D. industry growth or decline
- E. switching costs
Answer: A,C
Explanation:
Legislative changes wouldn't affect rivalry in a market as all suppliers would be equally as affected, the same with supply chain disruptions. Factors which do affect rivalry include; industry growth and decline, product differences, brand identity, switching costs, diversity of competitors and exit barriers. These are listed on p.41
NEW QUESTION 23
Agile Cars Ltd is creating a 'lean' business model which involves receiving deliveries of components only when they are required. Which of the following 'wastes' is being removed from the business?
- A. Over-production
- B. Transportation
- C. Inventory
- D. Defects
Answer: C
Explanation:
This would reduce inventory (holding stock). Inventory is considered a business waste because it costs money to store stuff (e.g. paying the rent on a warehouse, electricity to light it up etc). If you can reduce the need to store materials and components on site- you reduce costs. You also save time because you get deliveries when you need them- you don't need to allow for staff unpacking things, storing them away, then going back to them later when they need them. For more information on the 7 Business Wastes see p.70. This comes up in a couple of modules, so it's worth remembering.
NEW QUESTION 24
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