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CIPS Defining Business Needs Sample Questions (Q233-Q238):

NEW QUESTION # 233
Which of the following activities would apply to a straight rebuy procurement?
* Reviewing existing specifications and arrangements
* Engaging in extensive purchasing research
* Engaging in proactive value engineering
* Optimising inventory replenishment methods

A. 2 and 4 only
B. 1 and 4 only
C. 1 and 3 only
D. 2 and 3 only

Answer: B

NEW QUESTION # 234
Which of the following is part of a conformance specification?

A. Ideas, innovation, tolerances, and descriptions
B. Material, innovation, performance, and descriptions
C. Ideas, dimensions, tolerances, and output
D. Material, dimensions, tolerances, and drawings

Answer: D

Explanation:
Detailed Explanation:
Conformance specifications are highly detailed, covering exact materials, dimensions, tolerances, and technical drawings. They ensure precision in manufacturing and consistency between suppliers. Reference:
CIPS Level 4, Specification and Contract Development.

NEW QUESTION # 235
Which of the following are typically reasons why an organisation implements value analysis? Select TWO that apply:

A. To shape and manage supply market
B. To find cost reduction opportunities by optimising the components used
C. To determine the value of each component used
D. To provide an outline business case for the specification
E. To decide whether there will be sufficient surplus funds to reinvest in the business

Answer: C

Explanation:
Value analysis is a systematic review of the production, purchasing and product design processes to reduce overall product costs. This can be accomplished through a variety of activities, including the following:
- Designing products to use lower-tolerance parts that are less expensive
- Switching to lower-cost components
- Standardizing parts across product platforms in order to achieve volume discounts
- Altering production processes to minimize the amount of production cycle time, thereby reducing labor costs
- Introducing automation to strip labor costs out of the production process
- Altering product packaging to lower its cost while still protecting the product The process is not a wholesale attack on costs. Costs are only reduced when the result will not im-pact the perceived level of quality experienced by customers, or the level of customer satisfaction.
Reference: CIPS study guide page 160-163
LO 3, AC 3.4

NEW QUESTION # 236
Which of the following agencies can produce a technical standard?

A. House of Lords
B. Department of State
C. BSI
D. Marketing department

Answer: C

Explanation:
Technical standards are often produced by a national or international body such as British Standard Institute (BSI) LO 3, AC 3.1

NEW QUESTION # 237
Which of the following factors should be assessed to understand the competitiveness of a supply market?

A. Number of suppliers within the market
B. Presence of a minimum wage
C. Gross National Product of the country of manufacture
D. Previous price paid for goods

Answer: A

Explanation:
Comprehensive and Detailed Explanation (from CIPS L4M2: Market Analysis) Competitiveness is determined by market structure-how many suppliers operate and how concentrated they are.
A large number of suppliers = competitive market; few suppliers = oligopoly/monopoly # less competitive.
Hence, C is correct.
Relevant CIPS L4M2 Sections:
* Market competitiveness and supplier concentration
* Market intelligence for sourcing strategies

NEW QUESTION # 238
......

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