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CIPS Supplier Relationships Sample Questions (Q176-Q181):

NEW QUESTION # 176
Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.

Answer: A,D,F

Explanation:
Drivers for partnership include a high spend with the supplier, criticality of the product, and technical complexity. These factors encourage collaboration for cost efficiency, quality improvement, and risk management. Partnerships are less likely when there are many suppliers or the product is a commodity, as competition and standardization reduce the need for close collaboration.


NEW QUESTION # 177
In a partnership who is responsible for decision making?

Answer: D

Explanation:
The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152


NEW QUESTION # 178
Which of the following would be the most likely driver for a manufacturing organisation to consider partnership sourcing?

Answer: B

Explanation:
Shortening product life cycles require close collaboration and innovation between buyer and supplier to stay competitive. Partnership sourcing provides shared development, reduced lead times, and improved responsiveness. Stable markets or falling costs do not justify partnerships; they are best suited for high-risk, fast-changing environments.


NEW QUESTION # 179
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.

Answer: A,C

Explanation:
Legitimate reasons for contract termination under CIPS guidelines include failure to perform duties and serious breaches of contract terms. Ordering errors or changes in stakeholder needs are not valid termination grounds unless explicitly stated in the contract. This protects both parties from unjustified termination risks.


NEW QUESTION # 180
Laura is working with suppliers on the design of a component for a new boiler. One of the current suppliers suggested manufacturing the component from plastic they recently developed and patented, rather than commonly used brass. What competitive force is this supplier creating in the market to affect competition?

Answer: B

Explanation:
Comprehensive and Detailed Explanation:
In Porter's Five Forces framework, thethreat of substitutesrefers to the availability of products or services that can perform the same function as the industry's product. The supplier's suggestion to use a newly developed plastic component instead of the traditional brass one introduces a substitute product. This alternative can potentially change the dynamics of the market by offering different benefits, such as cost savings or improved performance, thereby affecting competition.
Reference:
CIPS L4M6 Study Guide


NEW QUESTION # 181
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