CIPS L4M1 UPDATED ACTUAL TEST BANK
WITH COMPLETE SOLUTION 100 PERCENT
VERIFIED
◉ What is the difference between tangible and intangible? Answer:
Tangible is physical and measurable (goods), tangible is not physical
(services)
◉ What is inventory? Answer: Components, raw materials, work in
progress, finished goods - or, the number of units/value of stock of
goods held
◉ What is the difference between purchasing and supply? Answer:
Purchasing is the act of physically ordering/buying something.
Supply is the infrastructure which allows products to get from
supplier to customer.
Both are functions within the procurement process.
◉ What is expediting? Answer: The process involved in the progress
of an order to ensure stock is received as quickly as possible
◉ What is a supply chain? Answer: Encompasses all organisations
and activities associated with the flow and transformation of goods
from the raw materials stage through to the end user, as well as the
associated information flows.
,◉ What are primary sector activities? Answer: Industries extracting
natural resources from the earth. Mining for coals and metals, drilling
for oil, agriculture, forestry and fishing.
◉ What are secondary sector activities? Answer: Manufacturing and
construction industries. Oil being refined to diesel, materials being
assembled into a house.
◉ What are tertiary sector activities? Answer: Businesses that support
the production and distribution process. Insurance, education and
healthcare.
◉ What is considered upstream in a supply chain? Answer: The
supply flow of raw materials, components and parts needed for
production
◉ What is considered downstream in a supply chain? Answer: The
supply chain an organisation feeds into, from product to end user.
◉ What does supply chain management aim to achieve? Answer:
Reduce costs, improve value and reduce risk, aiming to give the
supplying organisation a competitive advantage by adding value
throughout the process in an efficient and ethical way.
◉ Who are consumers within a supply chain? Answer: There is only
one - the end user.
,◉ How can value be attained in a supply chain? Answer: By
effectively managing:
Price
Delivery
Storage
Ethics
Environment
Sustainability
Communication
Quality
◉ What are ethical considerations within a supply chain? Answer:
Supply chains should be free from:
Modern slavery
Child labour
Poor working conditions
Unacceptable pay
These maintain the public image and reputation of a firm
◉ What is a supply chain network? Answer: An evolution of the basic
supply chain which defines the more complex structure, involving a
higher level of interdependences and connectivity allowing a two-way
exchange of information and materials to meet customer demands.
, ◉ What are the 5 areas supply chain networks are built around?
Answer: External suppliers - who is going to provide the materials?
Manufacturers - who is going to produce the end product?
Distribution/wholesale - who is going to manage storage and
transportation?
Logistics - who is ensuring everything is where it should be at the
right time?
Consumer demand - do the intended individuals have a desire for the
product?
◉ What are physical flows in a supply chain network? Answer:
Movement or storage of materials and end products - these ONLY
flow one way
◉ What are information flows in a supply chain network? Answer:
Organisational strategies and how they are communicated, the control
processes within the network and the standards to which the chain
should work - these flow BOTH ways
◉ What is the difference between procurement and supply chain
management? Answer: The fundamental difference is that the process
of supply chain management continues until the end product reaches
the consumer, whilst procurements role may have ended long before
this stage.
◉ What does procurement entail? Answer: Preparing specifications
WITH COMPLETE SOLUTION 100 PERCENT
VERIFIED
◉ What is the difference between tangible and intangible? Answer:
Tangible is physical and measurable (goods), tangible is not physical
(services)
◉ What is inventory? Answer: Components, raw materials, work in
progress, finished goods - or, the number of units/value of stock of
goods held
◉ What is the difference between purchasing and supply? Answer:
Purchasing is the act of physically ordering/buying something.
Supply is the infrastructure which allows products to get from
supplier to customer.
Both are functions within the procurement process.
◉ What is expediting? Answer: The process involved in the progress
of an order to ensure stock is received as quickly as possible
◉ What is a supply chain? Answer: Encompasses all organisations
and activities associated with the flow and transformation of goods
from the raw materials stage through to the end user, as well as the
associated information flows.
,◉ What are primary sector activities? Answer: Industries extracting
natural resources from the earth. Mining for coals and metals, drilling
for oil, agriculture, forestry and fishing.
◉ What are secondary sector activities? Answer: Manufacturing and
construction industries. Oil being refined to diesel, materials being
assembled into a house.
◉ What are tertiary sector activities? Answer: Businesses that support
the production and distribution process. Insurance, education and
healthcare.
◉ What is considered upstream in a supply chain? Answer: The
supply flow of raw materials, components and parts needed for
production
◉ What is considered downstream in a supply chain? Answer: The
supply chain an organisation feeds into, from product to end user.
◉ What does supply chain management aim to achieve? Answer:
Reduce costs, improve value and reduce risk, aiming to give the
supplying organisation a competitive advantage by adding value
throughout the process in an efficient and ethical way.
◉ Who are consumers within a supply chain? Answer: There is only
one - the end user.
,◉ How can value be attained in a supply chain? Answer: By
effectively managing:
Price
Delivery
Storage
Ethics
Environment
Sustainability
Communication
Quality
◉ What are ethical considerations within a supply chain? Answer:
Supply chains should be free from:
Modern slavery
Child labour
Poor working conditions
Unacceptable pay
These maintain the public image and reputation of a firm
◉ What is a supply chain network? Answer: An evolution of the basic
supply chain which defines the more complex structure, involving a
higher level of interdependences and connectivity allowing a two-way
exchange of information and materials to meet customer demands.
, ◉ What are the 5 areas supply chain networks are built around?
Answer: External suppliers - who is going to provide the materials?
Manufacturers - who is going to produce the end product?
Distribution/wholesale - who is going to manage storage and
transportation?
Logistics - who is ensuring everything is where it should be at the
right time?
Consumer demand - do the intended individuals have a desire for the
product?
◉ What are physical flows in a supply chain network? Answer:
Movement or storage of materials and end products - these ONLY
flow one way
◉ What are information flows in a supply chain network? Answer:
Organisational strategies and how they are communicated, the control
processes within the network and the standards to which the chain
should work - these flow BOTH ways
◉ What is the difference between procurement and supply chain
management? Answer: The fundamental difference is that the process
of supply chain management continues until the end product reaches
the consumer, whilst procurements role may have ended long before
this stage.
◉ What does procurement entail? Answer: Preparing specifications
