L4M6 CIPS Exam Lab Questions

Supplier Relationships Questions and Answers

Question 29

The Pareto Principle is sometimes also known as what?

Five Forces

JIT

ABC Analysis

Cost Engineering

Question 30

Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

yes- it is important to develop all relationships

yes- this will improve efficiencies for the buyer

no- supplier development should only be done with strategic suppliers

no- supplier development should only be done with tactical suppliers

Question 31

Which of the following would you use to qualify new suppliers? Select THREE.

commitment

clean

collection

cost

call

Question 32

Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?

No- partnerships should have end dates so both parties have a way out if things don’t work out

No- partnerships have end dates as they are contractual relationships

Yes-partnerships do not have end dates because they involve significant investment

Yes- partnerships do not have end dates because there is never a contract involved