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CIPS Supplier Relationships Sample Questions (Q60-Q65):

NEW QUESTION # 60
Achieving value for money can often be described as the three Es? What are these?

A. Efficiency, Economy, Ethics
B. Effectiveness, Efficiency, Economy
C. Economy, Efficiency, Environment
D. Ethics, Environment, Economy

Answer: B

Explanation:
The three Es are; Effectiveness, Efficiency and Economy. Sometimes a 4th E is added which is Equity (but this is mainly for the public sector).

NEW QUESTION # 61
What is value mapping?

A. Analysing the costs that go into making a product
B. Creating value through the elimination of waste and operational inefficiencies
C. Make vs Buy decision
D. Segmenting suppliers based on the value they bring to the company

Answer: B

Explanation:
The definition of value mapping is given on p.69 this is; 'a process in which value is created through the elimination of waste and operational inefficiencies'. It ties into JIT / Lean.

NEW QUESTION # 62
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.

A. suppliers are selling differentiated products
B. competition is not strong
C. there are no barriers to entry
D. competition is at its highest level possible

Answer: C,D

Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40

NEW QUESTION # 63
The Public Sector in the UK is unable to enter into formal partnership relationships with any supplier. Is this statement TRUE?

A. No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
B. No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.
C. Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market
D. Yes- the Public Sector is regulated by EU procurement regulations which prohibits this

Answer: D

Explanation:
The correct answer is 'Yes- the Public Sector is regulated by EU procurement regulations which prohibits this'. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.

NEW QUESTION # 64
In public sector procurement, according to EU legislation, certain items must be procured via open-competition. What type of items are these?

A. Items that are imported from outside the EU
B. Items that are produced by lots of suppliers
C. Items of strategic importance
D. Items of high value

Answer: D

Explanation:
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'. These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75

NEW QUESTION # 65
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