CIPS Ethical Procurement and Supply L3M2 Exam Questions

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Total 90 questions
Question 1

Van Weele wrote that 'quality is the degree in which XXXX requirements are met. We speak of a quality product or quality service when supplier and XXXX agree on requirements and those re-quirements are met'.



Answer : D

Quality, like most things in business, is ultimately about the customer.


Question 2

You work as a buyer for a large international corporation. You are currently involved in managing a high-value tender, and one of the potential bidders offers to take you to a horse-racing event, with all expenses paid. The offer is for you alone; not for colleagues in your organisation. What do you do?



Answer : A

Decline.

It seems pretty obvious, and I hope you can come up with one or two reasons for this being the cor-rect answer.


Question 3

You have invited quotations for some building maintenance work to be done at your organisational headquarters. Your sister has recently taken up a position as Head of Marketing at one of the firms which has quoted for the work. What should you do?



Answer : D

A simple solution is to 'recuse' yourself from anything to do with this procurement. That way, nei-ther you, your employer or your sister can be accused of malpractice.

Disbarring your sister's employer punishes them simply because both they and your firm employed high-quality people. :)

Sometimes knowing you are honest is not enough: sometimes you have to demonstrate that.

So the only answer which makes sense is the correct one, as above.


Question 4

The time between recognition / origin of the need; through to usage or consumption is described as:



Answer : D

There are different views of 'lead time'; in part depending on where you are standing. The QUESTION NO : refers to total lead time, sometimes referred to as 'true' lead time.

The other lead times all exist, in the eyes of the various parties to any particular transaction.

One should note that the internal lead time (ie within the buying organisation) is often much longer than the external lead time. The idea that 'procurement' or suppliers take a long time to process a re-quirement can be illusory.


Question 5

Individuals, units, teams, groups or organisations that have an influence over procurement, or which are affected by procurement operations, can be called:



Answer : B

The others may be stakeholders, but the answer is 'stakeholders' - those who have a legitimate inter-est in what is going on.


Question 6

Regarding quality management, how many defects?



Answer : A

Zero defects - a quality concept, recognising the significant cost of re-work - remedying problems created earlier in the process. It is therefore desirable to strive for 'zero defects', thus avoiding error correction, re-work, etc. An important idea within JIT, Lean, etc.


Question 7

Use of competition is most obviously going to influence which of the following 'rights'?



Answer : C

All aspects of an acquisition may be impacted by the use of competition - normally favourably - but the one we are most likely to see immediate impact on is 'price'.


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Total 90 questions