CIPS A7 Exam Practice Test Instant Access

Question 1

Which of the following best describes a technique for analysing the wider external environment?

APorters five force analysis

BValue chain analysis

CMultiple regression analysis

DPEST analysis

Answer : D

Question 2

When using the supplier positioning model to help determine purchasing strategies, which of the following best describes strategic purchases?

ALow expenditure purchases where supply is plentiful and there is little risk for the buying organization

BHigh expenditure purchases which carry a significant degree of risk for the buying organization

CLow expenditure purchases where supply is limited and there is some degree of risk for the buying organization

DHigh expenditure purchases where there is a large number of suppliers in the marketplace.

Answer : B

Question 3

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

Answer : C

Question 4

With which of the following is vendor rating mainly concerned?

ASecuring the lowest possible cost for purchases

BEnsuring that future deliveries are made on time

CEnsuring that supplier capacity is sufficient

DMeasuring the suppliers performance over time

Answer : A

Question 5

Which of the following is likely to contribute to sustained competitive advantage for an organization?

AA competence that may be described as distinctive

BCash flow statements that consistently show high liquidity

CA fair but firm human resources policy

DProducts or services that are priced below the market average

Answer : B

Question 6

Which of the following applies best to the quote: The law of the trivial many, but important few?

AThe Taguchi loss function

BWynstras supplier involvement model

CParetos 80/20 rule

DBensaous supplier profile matrix.

Answer : C

Question 7

When using the supplier positioning model to help determine purchasing strategies, which of the following best describes routine purchases?

ALow-expenditure purchases where supply is plentiful and there is little risk for the buying organization

BHigh-expenditure purchases which carry a significant degree of risk for the buying organization

CLow-expenditure purchases where supply is limited and there is some degree of risk for the buying organization

DHigh-expenditure purchases where there is a large number of suppliers in the marketplace.

Answer : A

CIPS A7 An Introduction to Purchasing Strategy Exam Practice Test