CIPS L4M1 -2025/2026 MODULE 1 Q&A GRADED
A+
Tangible - An item or product which you can touch, feel and, importantly, measure
Intangible - Something you cannot physically see or touch
Strategic - High level planning, including setting direction and long-term goals
Inventory - Components, raw materials, work in progress, finished goods and suppliers
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
Expediting - The process involved in the progress of an order to ensure stock is received as
quickly as possible
Primary sector - Industry sector that extracts raw materials
Secondary sector - Industry sector that manufactures things
Tertiary sector - Industry sector that provides services
Supply chain - A channel of goods distribution, which starts with the supplier of raw
materials or components, moves through an operational process to the distributor and
retailer, and finally to the consumer
Upstream (supply chain) - The supply flow of raw materials, components, parts, etc., needed
for production
Downstream (supply chain) - The supply chain that the organisation feeds into, from
product to end user
Ethics - Principles that govern a person's or organisation's behaviour
, Supply Chain Network (SCN) - An evolution of the basic supply chain, which defines the
more complex structure, involving a higher level of interdependence and connectivity
allowing a two-way exchange of information and materials to successfully meet customer
demands between more organisations both upstream and downstream
Tiering - The structured ordering and organisation of suppliers so that organisations
downstream work with fewer suppliers upstream
Original Equipment Manufacturer (OEM) - Generally perceived as the producer of own-
branded parts or equipment which are sold to other manufacturers for production and retail
Audit - An official inspection conducted, either by the procurement organisation itself or by
an independent third-party, to ensure compliance with requirements and standards
Boycott - Protest by refusing to deal with or buy from a particular individual or organisation
because of its behaviour
WEEE - The Waste Electrical and Electronic directive
Product organisation - An organisation that makes or manufactures products
Stakeholder - An individual or organisation with either an interest or an influence in
(however slight), or who will be affected in any way by, the decisions and/or actions of a
project, product, service or venture
ISO 9000 - A set of international quality management and quality assurance standards that
help companies effectively document and maintain an efficient quality system. They are not
specific to any one industry and can be applied to organisations of any size
Innovate - Generate a new idea, concept or method
Request for Quotation (RFQ) - An invitation to suppliers to bid on specific products or
services
Exchange rate - The value of one currency compared to another, which can vary day to day
A+
Tangible - An item or product which you can touch, feel and, importantly, measure
Intangible - Something you cannot physically see or touch
Strategic - High level planning, including setting direction and long-term goals
Inventory - Components, raw materials, work in progress, finished goods and suppliers
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
Expediting - The process involved in the progress of an order to ensure stock is received as
quickly as possible
Primary sector - Industry sector that extracts raw materials
Secondary sector - Industry sector that manufactures things
Tertiary sector - Industry sector that provides services
Supply chain - A channel of goods distribution, which starts with the supplier of raw
materials or components, moves through an operational process to the distributor and
retailer, and finally to the consumer
Upstream (supply chain) - The supply flow of raw materials, components, parts, etc., needed
for production
Downstream (supply chain) - The supply chain that the organisation feeds into, from
product to end user
Ethics - Principles that govern a person's or organisation's behaviour
, Supply Chain Network (SCN) - An evolution of the basic supply chain, which defines the
more complex structure, involving a higher level of interdependence and connectivity
allowing a two-way exchange of information and materials to successfully meet customer
demands between more organisations both upstream and downstream
Tiering - The structured ordering and organisation of suppliers so that organisations
downstream work with fewer suppliers upstream
Original Equipment Manufacturer (OEM) - Generally perceived as the producer of own-
branded parts or equipment which are sold to other manufacturers for production and retail
Audit - An official inspection conducted, either by the procurement organisation itself or by
an independent third-party, to ensure compliance with requirements and standards
Boycott - Protest by refusing to deal with or buy from a particular individual or organisation
because of its behaviour
WEEE - The Waste Electrical and Electronic directive
Product organisation - An organisation that makes or manufactures products
Stakeholder - An individual or organisation with either an interest or an influence in
(however slight), or who will be affected in any way by, the decisions and/or actions of a
project, product, service or venture
ISO 9000 - A set of international quality management and quality assurance standards that
help companies effectively document and maintain an efficient quality system. They are not
specific to any one industry and can be applied to organisations of any size
Innovate - Generate a new idea, concept or method
Request for Quotation (RFQ) - An invitation to suppliers to bid on specific products or
services
Exchange rate - The value of one currency compared to another, which can vary day to day
