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CIPS CIPS Level 4 Diploma in Procurement and Supply L4M6 New Questions

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Total 226 questions

Supplier Relationships Questions and Answers

Question 37

A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?

Options:

A.

Competing- the supplier needs to earn more money as they are struggling financially

B.

Avoiding- the supplier should avoid talking with the buyer as this may result in conflict

C.

Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival

D.

Accepting – the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them

Question 38

The use of technical jargon can result in what?

Options:

A.

Misunderstanding

B.

Lack of trust

C.

Increased price

D.

Lack of transparency

Question 39

ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

Options:

A.

outsource

B.

strategic alliance

C.

transactional

D.

arms length

Question 40

In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?

Options:

A.

False, the product is in a supply market which is highly complex and the product is of low importance

B.

False, the product is in a supply market which is highly complex and the product is of high importance

C.

True, the product is in a supply market which is of low complexity and the product is of high importance

D.

True, the product is in a supply market which is of low complexity and the product is of low importance

Page: 10 / 17
Total 226 questions