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[Hardware] L4M2 Exam Questions | Printable L4M2 PDF

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【Hardware】 L4M2 Exam Questions | Printable L4M2 PDF

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CIPS L4M2 exam covers various topics related to defining business needs, including understanding the importance of defining business needs, identifying business requirements, analyzing business needs, and communicating business needs to stakeholders. L4M2 Exam also tests a candidate's ability to understand different types of requirements, such as functional and non-functional requirements, and how to effectively communicate these requirements to stakeholders.
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CIPS Defining Business Needs Sample Questions (Q265-Q270):NEW QUESTION # 265
A procurement manager decided to use a conformance specification in a request for quotation (RFQ) for the manufacturing of a specialist item designed by their company. The company does not have the capability to manufacture the item in-house, but requires the item to be made to their detailed specification. Was this the correct thing to do?
  • A. Yes, as it means that the company will be able to get the most cost-effective price for the item from the chosen supplier
  • B. No, as the item will be of non-standard construction and will not be able to be used by other competitors
  • C. Yes, as it means that the company will get exactly what it has specified and that the item meets its specific requirements
  • D. No, as it means that the chosen supplier will not be able to use their expertise and knowledge to manufacture the item
Answer: C
Explanation:
Comprehensive and Detailed Explanation (paraphrased from CIPS L4M2 content) CIPS L4M2 clearly distinguishes between conformance and performance specifications.
* A conformance specification describes exactly what the item must be like - dimensions, materials, design drawings, tolerances, etc.
* It is appropriate when the buyer already has a detailed design and simply wants the supplier to manufacture to that design.
In this scenario:
* The buyer's organisation has designed the specialist item and has a detailed specification.
* They cannot manufacture it in-house, but they need the item exactly as designed.
This is precisely when CIPS says a conformance specification is appropriate: the purpose is to ensure the supplier delivers exactly what has been specified and that the item meets all the buyer's technical and functional requirements.
* Option D matches this principle exactly.
* Option A mentions cost-effectiveness, which might happen, but it is not the main reason for using conformance specifications.
* Options B and C describe issues that are either irrelevant or are more associated with over-specification or missed innovation opportunities, not with the basic correctness of using conformance specifications in this situation.
Relevant CIPS L4M2 areas:
* Types of specification: conformance vs performance vs outcome
* When to use buyer-designed (conformance) specifications
* Risks and benefits of restricting supplier design freedom

NEW QUESTION # 266
Which of the following factors should be assessed to understand the competitiveness of a supply market?
  • A. Number of suppliers within the market
  • B. Previous price paid for goods
  • C. Presence of a minimum wage
  • D. Gross National Product of the country of manufacture
Answer: A
Explanation:
Comprehensive and Detailed Explanation (from CIPS L4M2: Market Analysis) Competitiveness is determined by market structure-how many suppliers operate and how concentrated they are.
A large number of suppliers = competitive market; few suppliers = oligopoly/monopoly # less competitive.
Hence, C is correct.
Relevant CIPS L4M2 Sections:
* Market competitiveness and supplier concentration
* Market intelligence for sourcing strategies

NEW QUESTION # 267
Simon has received a requisition for a product identical to one already purchased, but this time the product requires specific customer-branded packaging. What type of purchase is this?
  • A. Straight re-buy
  • B. Modified re-buy
  • C. Unmodified re-buy
  • D. New buy
Answer: B
Explanation:
Comprehensive and Detailed Explanation (from CIPS L4M2: Specification and Buying Situations) CIPS identifies three main buying types:
* Straight re-buy - same product, same conditions.
* Modified re-buy - some aspects changed (e.g. packaging, quantity, or delivery).
* New buy - first-time purchase.
Since the product is the same but the packaging is changed, it fits modified re-buy.
Relevant CIPS L4M2 Sections:
* Buying situations and procurement complexity
* Modified re-buy examples

NEW QUESTION # 268
Aldar Properties is a property developer in UAE. In last month, it spent $2,160 for 10 tons of steel. In this month, it had planned 10% increment in budget for steel comparing to last month. But the number of orders boosted and total spend on steel reached $1,992.1 while Aldar has imported 11 tons. What is the main cost driver of steel budget?
  • A. Price variance
  • B. Quantity variance
  • C. Inflation
  • D. Both price and quantity variances
Answer: A
Explanation:
In this question, you have to calculate price variance and quantity variance.
Last month, 1 tonne of steel costed $216. This month, the price decreases to $181.1. Price variance = (P1 - P2)*Q2 = ($216-$181.1)*11 = $383.9 Quantity variance = (Q1-Q2)*P1 = -$216 Price variance is greater than quantity variance, therefore, price variance is the main cost driver.
LO 1, AC 1.4

NEW QUESTION # 269
Homecare Direct is a supplier of healthcare devices that has developed a new innovative product. Three buying organisations want to place orders, but feel the price is too high as the product is new. What action could the buying organisations take to increase their bargaining power?
  • A. The buyers should request a special discount for the first purchaser
  • B. The buyers should ask the supplier for exclusivity to one of the buying organisations
  • C. The buyers should consolidate their requirements negotiate and purchase together
  • D. Each buyer should negotiate and purchase their requirements separately
Answer: C

NEW QUESTION # 270
......
The CIPS L4M2 certification exam also enables you to stay updated and competitive in the market which will help you to gain more career opportunities. Do you want to gain all these Defining Business Needs (L4M2) certification exam benefits? Looking for the quick and complete CIPS L4M2 exam dumps preparation way that enables you to pass the L4M2 Certification Exam with good scores? If your answer is yes then you are at the right place and you do not need to go anywhere. Just download the Pass4cram L4M2 Questions and start Defining Business Needs (L4M2) exam preparation without wasting further time.
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