Free CIPS L4M3 Exam Questions

Become CIPS Certified with updated L4M3 exam questions and correct answers

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Total 193 Questions | Updated On: Aug 04, 2022

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Question 1

Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

A : improve supply chain transparency

B : condemn whole liabilities to subcontractors

C : reduce the main contract complexity

D : keep main contractor liable

E : induce the conflicts between the main contractor and subcontractors

Answer: A,D

Question 2

You are to do the KPIs and targets for international supplier and the following was done
1. Delivery in an hour
2. Return orders in an hour
Is that a good thing or not?

A : , the higher the targets are, the better the outcomes will be

B : , because the KPIs are not a realistic and justified

C : , because these targets will propel the suppliers to continuous improvement

D : , the local suppliers are always the best choice

Answer: B

Question 3

Sharaton Foods Holding is looking for a vegetable harvesting and packaging system. They use the performance specification in the tendering process. What are the benefits of using this type of specification?

1. Provide opportunities for innovation
2. Potentially limit the competition among the suppliers
3. Require less effort to produce a specification
4. Allow the end user to provide details on technical aspects

A : 1 and 4 only

B : 1 and 3 only

C : 1 and 2 only

D : 2 and 3 only

Answer: B

Question 4

A company needs to source a product from oversea. It wants to overcome technical barrier to cross-border trade by using standards in the specification. Which of the following is most likely to be incorporated into that specification?

A : tional standards

B : ternational standards

C : mpany standards

D : ands

Answer: B

Question 5

A procurement manager is preparing a long-term contract with a major supplier. She decides to use the variable pricing arrangement using price indices. The payment terms describe the circumstances and mechanism where the price is allowed to change. In order to successfully manage this type of contract, the buying organisation should have...?

A : od market knowledge

B : onomy of scale

C : lue for money

D : lection of base year

Answer: A

Page: 1 / 39

Total 193 Questions | Updated On: Aug 04, 2022

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