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Selected L4M6 CIPS Level 4 Diploma in Procurement and Supply Questions Answers

Page: 14 / 20
Total 263 questions

Supplier Relationships Questions and Answers

Question 53

A category buyer, managing an outsourcing project, is aware of the commercially sensitive nature of the project and wishes to adopt an accommodating approach to managing conflict amongst key stakeholders. Is this the correct approach?

Options:

A.

No, as the category manager has a low concern for others and a low concern for themselves

B.

Yes, as the category manager has a high concern for others and a high concern for themselves

C.

No, as the category manager has a high concern for themselves and low concern for others

D.

Yes, as the category manager has a low concern for themselves but high concern for others

Question 54

Within a supplier's terms and conditions, they have a 'mutual termination for convenience' clause, which requires either party to provide 30 days' notice. Before the buyer signed the agreement, a procurement colleague recommended that the buyer should request this be amended to 90 days' notice. Was this amendment the correct thing to do?

Options:

A.

Yes, as this will allow the buyer enough time to mobilize a new contract

B.

Yes, as the buyer will then be responsible for providing additional business to the supplier

C.

No, as this will be in breach of statutory contract law requirements

D.

No, as this will guarantee a hostile end to the buyer-supplier relationship

Question 55

Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew’s cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier’s product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier’s performance. Is this the correct thing to do?

Options:

A.

Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer

B.

Yes- partnership sourcing will improve sales figures

C.

No- Andrew should use an alternative supplier

D.

No- Andrew should outsource the vanilla extract.

Question 56

In a partnership who is responsible for decision making?

Options:

A.

The project steering committee

B.

Both the supplier and the buyer

C.

The buyer

D.

The supplier

Page: 14 / 20
Total 263 questions