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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q31-Q36):

NEW QUESTION # 31
Mark, a logistics procurement manager, describes his chain astightly coupled. What does this mean?

A. There are many organisations in the supply chain
B. There is flexibility in the supply chain
C. The supply chain is strong
D. There is a high level of interdependency in the supply chain

Answer: D

Explanation:
Atightly coupledsupply chain exhibitshigh interdependencebetween members; decisions by one partner affect all others.
Short cited extract: "Tightly coupled = high interdependence between supply-chain partners." (L5M7 Study Guide, p. 82) Reference:CIPS L5M7 Study Guide, p. 82.

NEW QUESTION # 32
George, a property manager, agrees acost-pluspayment with a plumber. Which of the following will he need to know to calculate total price?
Select THREE.

A. Supplier's tax rate
B. Cost of materials
C. Supplier's overhead and profit
D. Supplier's pension contribution
E. Cost of labour

Answer: B,C,E

Explanation:
Cost-plus pricingis based onactual material and labour costs plus an agreed marginfor overheads and profit.
Short cited extract: "Cost-plus = actual cost + agreed mark-up for profit/overheads." (L5M7 Study Guide, p.
191)
Reference:CIPS L5M7 Study Guide, p.191.

NEW QUESTION # 33
Which of the following is an example ofexceedingcustomers' expectations? Select TWO.

A. Providing a free gift when a purchase is made
B. The price is lower than the customer expected to pay
C. Providing the item desired in a different colour
D. A customer orders an item online and it is delivered on the expected day

Answer: A,B

Explanation:
Meeting expectations (B) is not exceeding them. Exceeding is demonstrated byunexpected extra valuesuch as lower-than-expected priceora free add-on. Short extract: "exceeding expectations-delighting customers with additional/unexpected value." (L5M7 Study Guide, p.121) Reference:L5M7 Study Guide, p.121.

NEW QUESTION # 34
Which of the following could be consideredadded valuewithin a supply chain? Select THREE.

A. Innovation
B. Marketing
C. Time to market
D. Profit
E. Quality

Answer: A,C,E

Explanation:
The guide listsquality,innovation, andtime-to-marketamong ways supply chains createadded value(others include price/cost reduction and risk reduction). Short extract: "added value may be created through quality, innovation and time-to-market." (L5M7 Study Guide, p.27) Reference:L5M7 Study Guide, p.27.

NEW QUESTION # 35
Which of the following areadvantages of using local sourcing? Select TWO.

A. Cheaper
B. Flexibility for support and maintenance
C. Higher quality
D. Higher costs
E. Less environmental impact

Answer: B,E

Explanation:
Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.
Short cited extract: "Local sourcing provides reduced environmental impact and proximity for support." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.

NEW QUESTION # 36
......

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