L4M4 RELIABLE TEST BOOK, L4M4 RELIABLE TEST DURATION

L4M4 Reliable Test Book, L4M4 Reliable Test Duration

L4M4 Reliable Test Book, L4M4 Reliable Test Duration

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CIPS Ethical and Responsible Sourcing Sample Questions (Q83-Q88):

NEW QUESTION # 83
Which of the following payment mechanisms is most beneficial to the supplier?

  • A. cash in advance
  • B. sight draft
  • C. open account
  • D. letter of credit

Answer: A

Explanation:
cash in advance is the most beneficial to a supplier.
Open account /credit account is the most beneficial to the buyer. Learn this as it's a known exam topic.


NEW QUESTION # 84
Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of their manufacturing operations. Which of the following is a risk of offshoring that Steff should consider.

  • A. exportation rules and tariffs
  • B. importation rules and tariffs
  • C. lower operating costs
  • D. payments by electronic bank transfer

Answer: B

Explanation:
The correct answer is importation rules and tariffs. This is because in offshoring some of the manufacturing will be done in another country then shipped back to the UK. The products will have to go through customs so may be subject to tariffs and duties.
Steff's not exporting anything in the scenario and paying electronically and getting lower costs are not RISKS.


NEW QUESTION # 85
The procurement team received an urgent request from the business to source quotations for pestcontrol services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach to use in the circumstances?

  • A. Yes, so that the local pest control sector can decide between them who should bid
  • B. No, because international vendors must also be notified of the opportunity
  • C. Yes, they must seek as many bids as possible, even if it takes longer
  • D. No, because they might receive too many irrelevant proposals which may delay the assessing process

Answer: D

Explanation:
Advertising in a local newspaper for a specialized requirement can lead to irrelevant bids, delaying the process. Efficient sourcing practices recommend targeted advertising to reach qualified suppliers, ensuring timely responses and reducing assessment time, especially for urgent needs.


NEW QUESTION # 86
Which models would be appropriate for analysis of the supply market?
* Porter's Five Forces
* Porter's Value Chain
* STEEPLED
* Ishikawa Fishbone

  • A. 3 and 4 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 2 and 3 only

Answer: C

Explanation:
Porter's Five Forces and the STEEPLED model are valuable tools for analyzing supply markets. These models help identify external pressures and market dynamics, supporting responsible sourcing by enabling buyers to understand and respond to market influences effectively.


NEW QUESTION # 87
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?

  • A. it is hard to be objective
  • B. it is easy to manipulate
  • C. it allows transparency
  • D. it is time-consuming to create

Answer: C

Explanation:
Weighted points systems can be time consuming to create. They're very transparent and allow for objective grading of supplier bids (so these answers are incorrect). They are not easy to manipulate and this is an advantage of using them.


NEW QUESTION # 88
......

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