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CIPS – Defining Business Needs L4M2 paper 8.
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1.
Which of the following are common components of a tender specification? Choose TWO that apply:
2.
What topics does the ISO 14000 series address? Select the correct two criteria:
1. Life-cycle analysis
2. Continuous improvement
3. Financial information
4. Climate change
3.
When is supplier bargaining power likely to be high? Choose TWO scenarios that apply:
4.
Which of the following factors would strengthen a buyer’s position in negotiations with a supplier?
5.
Which of the following are examples of fixed costs? Select TWO that apply:
6.
What should a company consider when procuring a product with a modified re-buy?
7.
An automotive company has launched its first self-driving vehicle and opted for a market-skimming pricing strategy. Is this the right decision?
8.
Head of procurement Tracy is looking to get a full understanding of the manufacturing operational costs for producing a textbook. Which of the following are classified as direct costs?
9.
A company has purchased new capital equipment and needs to arrange a three-year maintenance contract. What pricing mechanism should be used for accuracy in quotes?
10.
Specifications form the basis for many contracts. A local authority requires a bridge over a river that is 2 meters wide and needs a warranty for workmanship and materials. Which specification is most suitable?
11.
Which content should be included in a performance specification? Select TWO that apply:
12.
A project manager is conducting a make or buy analysis for procurement. Which costs should be taken into account?
1. Direct costs
2. Indirect costs
3. Out-of-pocket costs
4. VAT costs
13.
The buyer’s database is regarded as a primary data source. Which of the following is also a source of primary data?
14.
A company has purchased a component, but it has failed inspection. It has been purchased regularly for use in a finished product but the company decided to use a new supplier and issued a very short performance specification to the supplier. What could be the reason for the failure?
15.
Which of the following are secondary sources of data for costs and prices?
1. Industry press
2. Published economic indices
3. Trade fairs
4. Buyer’s database on market data
16.
When drafting a business case, Benjamin believes he has power over a supplier and will consider this when detailing budget information. Is adopting a powerful approach with the supplier a reasonable approach?
17.
Azram a procurement analyst has been tasked with analyzing whole life costing when purchasing a piece of laboratory equipment. Was this the correct course of action?
18.
Suppliers are powerful in which of the following situations?
1. There is potential for backward integration
2. Products and services are undifferentiated
3. The switching costs for buyers is high
4. There are few substitute products
19.
A company responsible for managing public transportation, including the upkeep of bus and train stations, seeks to ensure the cleanliness of facilities that are frequently used by the public. What factors should the procurement team consider when creating the specification for a cleaning contract to ensure the best possible impact on users?
20.
Rose, who manages capital equipment purchases at a local hospital, is tasked with calculating the payback period for a high-powered microscope. The microscope costs £50,000 and is expected to be in high demand. How long will it take for the hospital to recover the initial investment?
21.
CompanyMax in the plumbing and heating industry, has developed and patented a new range of products made from an alternative material, providing significant cost savings compared to traditional brass. The company plans to release a full range of these new products. How will this innovation affect the competitive forces in the market?
22.
Company X is the largest consumer of brass in the country, accounting for 48% of all brass produced, while the second-largest consumer uses less than 10%. Which type of power does Company X hold in this situation?
23.
Which of the following competitive forces have an impact on markets in today's business environment?
24.
Harpal Patel, the Aircraft Category Manager, is in the process of acquiring multiple aircraft engines. He is evaluating which specification category would be most suitable and opts for a conformance-based specification. In which of the following scenarios would this type of specification be the most fitting?
25.
Rose, a junior procurement analyst, has been tasked with evaluating the competitive dynamics in the garden furniture market. XYZ Ltd is the leading manufacturer in the country, accounting for 70% of all garden furniture production, while the second largest producer makes less than 5%. Which form of power does XYZ Ltd hold?
26.
Which of the following is an indirect cost for a motor vehicle manufacturer?
27.
An example of a direct cost is:
28.
When a stakeholder drafts a specification, the buyer should ensure that it:
29.
Which of the following does the ISO 9000 series cover? Choose TWO that apply:
30.
Would economies of scale serve as a barrier for new entrants to a market?
