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Download CIPS Supplier Relationships Exam Dumps
NEW QUESTION 42
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?
- A. Yes-partnerships do not have end dates because they involve significant investment
- B. Yes- partnerships do not have end dates because there is never a contract involved
- C. No- partnerships have end dates as they are contractual relationships
- D. No- partnerships should have end dates so both parties have a way out if things don’t work out
Answer: A
Explanation:
The correct answer is ‘Yes-partnerships do not have end dates because they involve significant investment’. This is explained on p.126. Partnerships can involve contracts – so the other ‘yes’ answer is incorrect.
NEW QUESTION 43
A manufacturing company which produces showers struggles to get hold of a certain part called a mixer valve. It is impossible to make the showers without the mixer-valve and there is only one supplier in the market that produces them. The good news is they aren’t very expensive to buy. What type of supplier is the supplier of mixer valves?
- A. bottleneck
- B. routine
- C. leverage
- D. strategic
Answer: A
Explanation:
This is a bottleneck supplier- refer to the Kraljic matrix on p.20; these types of supplier hold a monopoly in the marketplace and provide low-value items. There are lots of questions on Kraljic in the exam – do revise this topic and ensure you understand each of the four quadrants of the matrix
NEW QUESTION 44
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket’s profitability. What should Sandra do first?
- A. Develop an exit strategy
- B. Give written notice to the supplier of plans to terminate
- C. Obtain business approval to terminate the contract
- D. Review the market and look for an alternative supplier
Answer: C
Explanation:
The first step is to obtain business approval to terminate. If Senior Management don’t give approval, then the rest of the stages can’t happen and Sandra will be stuck with her current banana supplier. There’s a good diagram on p.109 detailing the steps to supplier termination.
NEW QUESTION 45
In a monopoly market, which of the following statements is true?
- A. There is a threat of new entrants
- B. bargaining power of buyers is strong
- C. There is strong rivalry
- D. bargaining power of suppliers is strong
Answer: D
Explanation:
In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter’s 5 Forces – see p. 39
NEW QUESTION 46
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.
- A. Pre-Qualification Questionnaire
- B. Request for Quotation
- C. Invitation to Tender
- D. Request for Information
Answer: A,D
Explanation:
Request for Information and Pre-Qualification Questionnaire can be used for short-listing suppliers. Request for Quotation is used when the only variable is price and you would like suppliers to submit a price for you. Invitation to Tender would be the next stage after RFI / PPQ- this is sent out to those suppliers who have passed selection, and details the second stage of the competition. See p.75 for more details.
NEW QUESTION 47
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