CIPs L4M1 LO1 with correct answers 100% 2026

CIPs L4M1 LO1 with correct answers 100% 2026 Procurement - Correct Answer Involves obtaining something either tangible (goods) or intangible (services). The process begins by identifying a need and is complete once that need is delivered. It is a strategic function. tangible - Correct Answer capable of being touched; real, concrete intangible - Correct Answer unable to be touched or grasped; not having physical presence Procurement elements - Correct Answer 1. Added Value 2. Cost 3. Inventory 4. Logistics 5. Purchasing 6. Quality 7. Supply 8. Waste Management Strategic - Correct Answer High level planning including setting direction and long term goals. A typical Supply Chain - Correct Answer Primary - raw materials Secondary - manufacturing Tertiary - services Each sector adds value. Supply Chain Definition - Correct Answer The infrastructure involved in physically getting the products and services delivered. A channel of goods distribution. Starts with raw material supplier. Moves through a operational process to the distributor and retailer. And finally to the customer. Upstream Supply Chain - Correct Answer Supply of raw materials, components, parts etc that are needed for production. downstream supply chain - Correct Answer the supply chain from the production facility to the end-customer Supply Chain Management - Correct Answer a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value Value/Supply Chain - Correct Answer 1. Price 2. Delivery 3. Stoarge 4. Ethics 5. Environment 6. Sustainability 7. Communication 8. Quality Ethics definition - Correct Answer Principles governing the behavior of an individual or a group. These principles establish appropriate behavior indicating what is right and wrong. Supply Chain Network - Correct Answer Evolution of basic supply chain to include all other parties involved in the entire supply process rather than just one element. A two-way exchange of information. A one-way flow of goods. Physical flows - Correct Answer The movement and storage of goods and materials within a supply chain. These are the tangible parts of supply chain network. Goods flow one way only. Informational flows - Correct Answer Organisational strategies and the way they are communicated, the control processes within the network and the standards to which the chain should work. Information flows two ways. Difference between supply chain and supply chain networks - Correct Answer Scope: Supply Chain System: Focuses on the processes, activities, and functions that make up the operational and tactical aspects of the supply chain. It deals with the day-to-day execution of tasks. Supply Chain Network: Focuses on the structural and strategic aspects of the supply chain, including the design and configuration of the supply chain's physical and logistical components. Timeframe: Supply Chain System: Concerned with immediate and short-term tasks related to the flow of goods and information.Supply Chain Network: Addresses longer-term planning and strategic decisions regarding the setup of the supply chain. Decision-Making Level: Supply Chain System: Involves decisions made at the operational and tactical levels by supply chain managers and practitioners. Supply Chain Network: Involves decisions made at the strategic level by top management, such as network design, location planning, and partnership strategies. What is added value? - Correct Answer Non-cash releasing benefits generated via procurement processes and supplier relationship management. Also defined as product and service mix features which the customer values and is therefore prepared to pay extra for. What is cost? - Correct Answer The amount of money used to make a product or deliver a service What is inventory? - Correct Answer Components, raw materials, work in progress, finished goods and supplies required for the creation of goods and services for the customer. It can also refer to the number of units and/or value of the stock of goods held by a company What is logistics? - Correct Answer The movement of something from one place to another What is purchasing? - Correct Answer The buying of goods and services for a business. What is quality? - Correct Answer The ability of a product or service to consistently meet or exceed customer expectations by following set standards.