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CIPS Updated L4M2 Exam Questions and Answers by hawa

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CIPS L4M2 Exam Overview :

Exam Name: Defining Business Needs
Exam Code: L4M2 Dumps
Vendor: CIPS Certification: CIPS Level 4 Diploma in Procurement and Supply
Questions: 317 Q&A's Shared By: hawa
Question 36

A procurement manager has noticed that profitability within a market has increased steadily over the years. In addition, the market is relatively easy to enter, and demand within the market is predicted to remain high. Which of the following is likely to happen in this particular market as a direct consequence of these factors?

Options:

A.

Buyers will switch to a different market

B.

The market will attract new entrants

C.

Suppliers will invest more heavily in technology

D.

The regulator will intervene and establish pricing controls

Discussion
Question 37

A procurement manager decided to use a conformance specification in a request for quotation (RFQ) for the manufacturing of a specialist item designed by their company. The company does not have the capability to manufacture the item in-house, but requires the item to be made to their detailed specification. Was this the correct thing to do?

Options:

A.

Yes, as it means that the company will be able to get the most cost-effective price for the item from the chosen supplier

B.

Yes, as it means that the company will get exactly what it has specified and meets its specific requirements

C.

No, as the item will be of non-standard construction and will not be able to be used by other competitors

D.

No, as it means that the chosen supplier will not be able to use their expertise and knowledge to manufacture the item

Discussion
Question 38

What are the typical purposes of specifications in procurement and supply? Select TWO that apply.

Options:

A.

To define the requirements

B.

To provide supplier appraisal and selection

C.

To define the bargaining strength of the buyer

D.

To provide a means of evaluating the quality or conformance

E.

To minimise the bargaining strength of the supplier

Discussion
Question 39

Azram, a procurement analyst, has been tasked with applying whole life asset management when purchasing a piece of laboratory equipment. Was this the correct course of action?

Options:

A.

Yes, because this focuses only on the price of the equipment

B.

Yes, because this considers all associated costs

C.

No, because this considers the costs of quality

D.

No, because this covers various transactional costs

Discussion
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