FREE PDF 2025 PROFESSIONAL CIPS L4M6 STUDY PLAN

Free PDF 2025 Professional CIPS L4M6 Study Plan

Free PDF 2025 Professional CIPS L4M6 Study Plan

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CIPS Supplier Relationships Sample Questions (Q142-Q147):

NEW QUESTION # 142
The Pareto Principle is sometimes also known as what?

  • A. Cost Engineering
  • B. JIT
  • C. ABC Analysis
  • D. Five Forces

Answer: C

Explanation:
Pareto is the 80:20 rule- this can be adapted to talk about supplier relationships, where instead of having 2 categories there are now 3 (A B and C). CIPS use the terms Pareto and ABC interchangeably. See p.16 for further information


NEW QUESTION # 143
Which of the following behaviours are you likely to see in a Partnership relationship?

  • A. Secrecy and honest communication
  • B. Opportunistic behaviour and strong levels of trust
  • C. Strong levels of trust and honest communication
  • D. Honest communication and opportunistic behaviour

Answer: C

Explanation:
The correct answer is 'Strong levels of trust and honest communication'. The questions on Partnership in the exam tend to be quite straightforward, but if you're struggling with this see p. 148 for further details of behaviour in Partnerships.


NEW QUESTION # 144
Price fluctuations can affect profitability. Is this statement correct?

  • A. No, only decisions made by the chief executive affect the price
  • B. No, price is not related to profitability
  • C. Yes, if the product's costs increase and the price does not
  • D. Yes, as sales may drop if the product is price inelastic

Answer: C

Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost- price relationships is key to managing profitability in procurement.


NEW QUESTION # 145
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?

  • A. OJEU
  • B. ITT
  • C. PCR 2015
  • D. TUPE

Answer: D

Explanation:
The correct answer is TUPE: Transfer of Undertakings (Protection of Employment). Details on TUPE can be found on p.115


NEW QUESTION # 146
Under what circumstances should a competitive tender not be completed? Select TWO.

  • A. When there is not a clear specification
  • B. When the items are of high value
  • C. When there is a clear specifications
  • D. When the items are of low value

Answer: A,D

Explanation:
Note the word 'NOT' in the question. In order for a competitive tender to be successful, there should be a clear specification in place (i.e. you need to know what you want, in order for suppliers to bid for it). Competitive tendering should also only be used for high value purchases; it's time consuming to do, so you wouldn't do it for low value items such as pens for the office. Therefore the correct answer to this question is 'items are of low value' and 'there isn't a clear specification'. There's a useful table on p.73 of when you would and wouldn't use a competitive tender.


NEW QUESTION # 147
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