EXAM L4M4 ANSWERS | L4M4 INSTANT DOWNLOAD

Exam L4M4 Answers | L4M4 Instant Download

Exam L4M4 Answers | L4M4 Instant Download

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 2
  • Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
Topic 3
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 4
  • Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.

>> Exam L4M4 Answers <<

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CIPS Ethical and Responsible Sourcing Sample Questions (Q98-Q103):

NEW QUESTION # 98
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

  • A. location
  • B. price
  • C. distribution
  • D. quality
  • E. reputation

Answer: B,D

Explanation:
Price and Quality are the two considerations when marking a competitive tender.
Location, distribution and reputation may be considered for SOME tenders, but these would be sub-categories that fall under 'quality questions.


NEW QUESTION # 99
When working closely with a supplier, waste can be reduced which can lead to improved business functions and cost savings. Which of the following are wastes that can be removed from the supply chain? Select THREE.

  • A. Barriers
  • B. Waiting
  • C. Inventory
  • D. Motion
  • E. Over-analyzing

Answer: B,C,E

Explanation:
The correct answers are; motion, waiting and inventory.
This is part of Ohno's 8 Wastes. You can remember this with the acronym Tim Woods; transportation, inventory, motion, waiting, over-production, over-processing, defects, skills.
This is only mentioned briefly in this module but comes up in other modules more in depth, so is worth memorising if you can.


NEW QUESTION # 100
Which of the following is an advantage to the TUPE regulations?

  • A. Reduced overheads for the buying organisation
  • B. Increase in buyer power
  • C. Continuity of supply for the buying organisation
  • D. Value for money for the buying organisation

Answer: C

Explanation:
Continuity of supply for the buying organisation is an advantage of TUPE regulations.
TUPE is the Transfer of Undertakings (Protection of Employment). It's when the workforce / em-ployees of one company go to work for another one, usually after their company is bought out. They're transferred to the new company along with the furniture and buildings.
TUPE is UK specific. You don't need to know too much details about it for this exam - just what it is and the benefits. The main benefit is people don't lose their jobs when their company gets bought out. Basic guide to TUPE (pinsentmasons.com)


NEW QUESTION # 101
Which of the following payment mechanisms is most beneficial to the supplier?

  • A. sight draft
  • B. open account
  • C. letter of credit
  • D. cash in advance

Answer: D

Explanation:
cash in advance is the most beneficial to a supplier.
Open account /credit account is the most beneficial to the buyer. Learn this as it's a known exam topic.


NEW QUESTION # 102
Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?

  • A. the supplier has a high cost of sales
  • B. the supplier has a strong return on investment
  • C. the supplier is extremely profitable
  • D. the supplier has a lot of long-term debt

Answer: D

Explanation:
The correct answer is 'the supplier has a lot of long-term debt'. Gearing is a measure of how the business is being funded and looks at the ratio of debt to equity. For example if they have taken out lots of loans and mortgages, this would equate to a lot of debt which means a poor gearing ratio.
Gearing is a hot topic for the exam.


NEW QUESTION # 103
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