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CIPS L4M2 Valid Dumps Demo – L4M2 Reliable Study Guide

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NEW QUESTION 51
Which of the following problems may be identified as open-ended problems? Select TWO that apply:

  • A. The suppliers don't comply with the company's policy on underage labour.
  • B. A cyber attack takes down whole company's IT system
  • C. Shortage of key medicines in healthcare industry
  • D. Logistics costs incur a large portion in wholesale prices
  • E. Engine failures cause flight cancellations.

Answer: A,D

Explanation:
Open-ended problem is something stopping the achievement of an objective or blocking progress. To solve this type of problems, procurement professional should find a way to unblock the block-age. In the above question, high logistics cost is an obstacle to cost cutting objective while suppli-er's incompliance prevents the company to achieve its sustainable objective.
Reference:
LO 1, AC 1.1

 

NEW QUESTION 52
Which of the following always impact negatively on a company's cash flow? Select TWO that ap-ply

  • A. Increasing revenue
  • B. Customers agree to pay immediately
  • C. More inventory
  • D. Supplier shortens their payment period
  • E. Depreciation of fixed asset

Answer: C,D

Explanation:
To answer this question, candidates are required to remember the cash flow cycle and cost entries as well as the impact of their timing on a business.

Source: https://cfoperspective.com/free-your-cash-trapped-in-the-cash-conversion-cycle/ Shorter payment term and more inventory are likely to have negative impact on the cash flow be-cause the buyer has to pay sooner and greater.
“Customers agree to pay immediately” will increase the organisation's bank account sooner.
Depreciation has no impact on cash flow as it is only listed in Profit and Loss statement.
Increasing revenue may have negative or positive impact on cash flow, depending on the real situation.
Reference:
LO 1, AC 1.4

 

NEW QUESTION 53
Lider Ltd is a leading bathroom furniture manufacturer in Indi
a. The company has more than 30 years experience in the market with extended knowledge of engineering and customers' taste. Lider is planning to launch a new type of bath fitting next year which offers Bluetooth connectivity and thermostat display. The company gathers a team of multi-disciplines, including engineering, procurement, sales and marketing. At the first team meeting, the project leader tells the team to discuss which functions will be valued by the customers, and how to deliver those functions with the lowest costs possible. Which of the following describes the process that the project team is undertaking?

  • A. Standardisation
  • B. Just in time
  • C. Value engineering
  • D. Cost analysis

Answer: C

Explanation:
From the scenario, you can see that the project team is developing a new product. They start with analysing the functions, and the costs of delivering those functions. This is a typical process of value engineering. You may read more on value engineering from the reference paper.
Reference:
– CIPS study guide page 171-173
– Value Analysis – Norwood Whittle (cimaglobal.com)
– A CASE STUDY ANALYSIS THROUGH THE IMPLEMENTATION OF VALUE ENGI-NEERING (researchgate.net) LO 3, AC 3.4

 

NEW QUESTION 54
Which of the following are typical social considerations throughout the contract life cycle? Select the TWO that apply.

  • A. Support small local businesses
  • B. Health and safety
  • C. Minimizing use of non-renewable resources
  • D. Managing waste
  • E. Using recycled materials

Answer: A,B

Explanation:
The following are typical social criteria in procurement:
* Reducing unemployment
* Preventing the use of child labour
* Preventing discrimination on the grounds of race, religion, disability, sex or sexual orientation
* Encouraging good employment practice
* Reducing local unemployment
* Reducing social exclusion
* Promoting training opportunities for the young or disadvantaged
* Encouraging access to work for people with disabilities
Reference:
LO 3, AC 3.2

 

NEW QUESTION 55
……

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