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L4M2 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

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Questions 4

In 2016, ANA Airlines had to cancel some of its flight. The airline said it had discovered the cracks to the jet engine turbine blades. What should ANA procurement team do next to solve this problem?

Options:

A.

Collect data to identify the root cause

B.

Generate options addressing the issue

C.

Analyse the situation and draw conclusion

D.

Assess the risks

E.

Define the ideal solution

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Questions 5

A procurement manager includes provision on recovery from natural disaster into a through-life specification. Some suppliers suppose that provision is unnecessary. Is procurement manager’s action justified?

Options:

A.

No, because with current technology, natural disaster can’t disrupt supply chain.

B.

Yes, because natural disaster may cause risks in organisation’s supply chain

C.

Yes, because the regulations require contract to have recovery provision

D.

No, because this provision will incur unnecessary cost to supplier

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Questions 6

Robert is a buyer at Pickton's Farm Products (PFP), a manufacturer of food products that are sold to supermarkets. Robert will be sourcing from local farmers to supply PFP with raw materials for PFP's products. What is a major supply chain risk that Robert needs to be aware of which is specific to this market?

Options:

A.

The quality of goods received by PFP may be of varying quality and need to be returned to the supplier for replacement

B.

A supplier may deliver an incorrect quantity of materials to PFP, leading to PFP incurring storage charges

C.

Extreme or unexpected weather conditions may affect the supplier's ability to supply PFP in line with quantity and timing requirements

D.

Suppliers to PFP may also supply other customers which they prioritise over PFP, leading to delays in PFP's production process

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Questions 7

Which of the following are advantages of zero-based financial budgeting?

    Use of previous year figures

    Emphasis on short-term planning

    Budget treated as flexible

    Focus on operational issues

Options:

A.

1 and 4 only

B.

2 and 4 only

C.

3 and 4 only

D.

1 and 2 only

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Exam Code: L4M2
Exam Name: Defining Business Needs
Last Update: Nov 21, 2024
Questions: 237
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