CIPS A7 Exam Practice Test Instant Access

Question 1

Which of the following best describes a strategy of 'related diversification'?

AMarketing an existing product in an existing market

BMarketing a new product in an existing market

CMarketing a new product in a new market

DMarketing an existing product in a new market.

Answer : C

Question 2

Which of the following best describes 'total lead time'?

AThe time elapsing from the placing of an order to the delivery of the order to the user

BThe time elapsing from the need of a product arising to the delivery of that product to the user

CThe time elapsing from the receipt of the purchase order by the supplier to the delivery of the product to the user

DThe time elapsing from the need arising to the payment of the supplier's invoice.

Answer : C

Question 3

For which of the following purposes would an organization use 'Porter's Five Forces' analysis? (2 marks)

ATo understand the nature of its resource use

BTo understand the nature of its logistics system

CTo understand the nature of the opportunities and threats it faces

DTo understand the nature of its competitive position.

Answer : A

Question 4

A Porter's 'five forces' analysis would enable an organization to understand which of the following?

AIts strengths and weaknesses

BIts resource use

CIts purchasing efficiency

DIts competitive position.

Answer : D

Question 5

Which of the following tools of analysis is most suited to establishing the targets for an internal cost reduction programme?

APareto analysis

BValue chain analysis

CPorters 'five forces' analysis

DAnsoffs analysis.

Answer : A

Question 6

Which of the following defines 'value' in the context of value analysis?

AValue = Function/Cost

BValue = Feature added to a product to secure a premium price

CValue = Selling price/Cost

DValue = Cost/Function.

Answer : B

Question 7

Which of the following best describes The inequality curve that results from a graphical representation of the percentage of annual spend against the percentage number of suppliers receiving that spend?

AThe Taguchi loss function

BKraljics supplier positioning model

CParetos 80/20 rule

DMinzunos quality function deployment model

Answer : C

CIPS A7 An Introduction to Purchasing Strategy Exam Practice Test