Question No. 1

'Bottleneck' items in the supply positioning model are best described by which of the following?

AImportant purchases that are made in a market where there are many suppliers but where the value is high

BImportant purchases made in a market where there are few suppliers and the value is low

CImportant purchases made in a market where there are few suppliers but the value is high

DImportant purchases made in a market where there are many suppliers and the value is low.

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Correct Answer: B

Question No. 2

A manufacturing organization is pursuing a strategy of focus.

The sourcing of which of the following items would best represent the main aim of the organization's procurement activity?

ALow-cost standardised products and components

BMainly branded products and components

CLow-cost non-standard products and components

DHigh-cost unique products and components.

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Correct Answer: C

Question No. 3

Which of the following is supplier evaluation mainly concerned with?

AEnsuring that deliveries are made on time

BEnsuring compliance with the terms and conditions of contract

CEnsuring that an existing supplier is rated on technical and commercial criteria

DEnsuring that risk is reduced in a potential long-term supply relationship.

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Correct Answer: A

Question No. 4

Which of the following best describes the technique Pareto analysis?

AThe law of diminishing marginal returns

BThe law of the trivial few but important many

CThe law of unintended consequences

DThe law of the important few but the trivial many

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Correct Answer: C

Question No. 5

Which of the following statements best defines value chain analysis?

AThe assessment of the internal and external linkages between the activities which are important to the organization

BAnalyzing the value that may be added through outsourcing a non-core activity of an organization

CAssessing the contribution that could be made to an organization by tiering suppliers

DAnalyzing the effects of forward or backward integration in a supply chain

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Correct Answer: C

Free CIPS A7 Exam Actual Questions