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[Hardware] Free PDF 2026 Useful CIPS L5M6: Category Management Pass4sure Dumps Pdf

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【Hardware】 Free PDF 2026 Useful CIPS L5M6: Category Management Pass4sure Dumps Pdf

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CIPS Category Management Sample Questions (Q88-Q93):NEW QUESTION # 88
Which of the following is an example of a supply chain risk? Select TWO.
  • A. A cargo ship is delayed due to strike action at a port of entry
  • B. A consultant provides bad advice to a client as they are unaware of a legislation change
  • C. Lightning strikes the organisation's HQ
  • D. Badly defined T&Cs in a contract cause a supplier to fail to deliver services effectively
Answer: A,D
Explanation:
Supply chain risks are risks that involve suppliers or logistics networks and have a direct impact on procurement performance. Poorly defined contract terms (Option A) may cause service failure, while delays due to port strikes (Option D) disrupt inbound logistics. These are classic supply chain risks because they are linked to supplier performance or external logistics factors. By contrast, lightning striking HQ is an internal operational risk, and a consultant giving poor advice is a professional service risk rather than a direct supply chain issue. For procurement, identifying supply chain risks is critical to developing mitigation strategies such as alternative suppliers, buffer stock, or stronger contractual clauses. Risk assessment frameworks like the likelihood/severity matrix help prioritise which risks to address first.
Reference: CIPS L5M6 Study Guide, p.56

NEW QUESTION # 89
Which of the following approaches to managing cost, common in Category Management, results in the most reduced costs from suppliers and increased value?
  • A. Cost-out
  • B. Cost-down
  • C. Price acceptance
  • D. Price management
Answer: A
Explanation:
Cost-out is the most effective approach for reducing supplier costs while increasing value. It involves redesigning products or services collaboratively with suppliers to eliminate costs before they occur. For example, altering product design to use fewer materials can reduce overall costs without compromising quality. This differs from price acceptance (simply accepting a supplier's offer), price management (controlling or negotiating pricing), or cost-down (gradual cost reduction). Cost-out is proactive and strategic, focusing on long-term value creation rather than short-term savings. For category managers, adopting cost-out strategies requires close supplier collaboration, innovation, and joint investment in process improvements.
Reference: CIPS L5M6 Study Guide, p.79

NEW QUESTION # 90
Peak Pricing is also known as which other type of pricing model?
  • A. Dynamic pricing
  • B. Price skimming
  • C. Penetration pricing
  • D. Limit pricing
Answer: A
Explanation:
Peak pricing is another term for dynamic pricing, where the cost of a product or service changes in response to fluctuations in demand and market conditions. A common example is airline ticket pricing, where fares increase during peak travel periods and drop during off-peak times.
Dynamic pricing relies on market data, technology, and sometimes artificial intelligence to adjust prices in real-time. It maximises revenue by capturing higher margins during periods of strong demand while stimulating sales when demand weakens.
Other options are different strategies:
* Penetration pricing involves initially low prices to gain market entry.
* Limit pricing aims to deter new entrants by setting prices low enough to discourage competition.
* Price skimming involves launching at a high price, then gradually lowering it as demand declines.
In category management, understanding pricing models like dynamic pricing helps procurement anticipate supplier pricing strategies and develop negotiation tactics.
[Ref: CIPS L5M6 Study Guide, pp.180-182 - Pricing models and procurement]

NEW QUESTION # 91
Which of the following parts of a SWOT analysis summarise activities and characteristics which are internal to the business? Select TWO.
  • A. Threats
  • B. Strengths
  • C. Opportunities
  • D. Weaknesses
Answer: B,D
Explanation:
A SWOT Analysis distinguishes between internal factors (strengths and weaknesses) and external factors (opportunities and threats). Strengths are internal capabilities, resources, or skills that give the organisation an advantage in the market-such as strong supplier relationships, unique expertise, or cost leadership.
Weaknesses are internal limitations, such as lack of investment, poor technology, or inadequate processes.
These are factors the organisation has direct control over and can improve. On the other hand, opportunities and threats are external influences outside the business's direct control, such as market trends, legislation, or competitor actions. For category management, applying SWOT allows managers to assess the current position of categories and design strategies that build on strengths and address weaknesses. This analysis also ensures that procurement strategies remain aligned with organisational goals and competitive environments. The correct recognition of internal versus external factors is essential to avoid misdiagnosis and wasted effort.
Reference: CIPS L5M6 Study Guide, p.121

NEW QUESTION # 92
Jonah is a Procurement Specialist responsible for a sub-category of work which includes procuring skilled labour for construction. Sub-categories can also be known as what within a Category?
  • A. Commodities
  • B. Lots
  • C. Divisions
  • D. Sets
Answer: A
Explanation:
Within Category Management, sub-categories are often referred to as commodities. These are narrower groupings within a category that focus on specific goods or services. For example, within the Construction category, commodities might include raw materials, subcontracted labour, or specialist equipment hire.
Recognising commodities helps procurement apply tailored strategies that address their specific market dynamics and risk profiles. It also provides clarity when developing category plans, as different commodities may require different sourcing and supplier management approaches. By managing at both category and commodity levels, organisations can strike a balance between broad strategic alignment and detailed tactical execution.
Reference: CIPS L5M6 Study Guide, p.52

NEW QUESTION # 93
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