CIPS level 4 Module 8 Questions & Answers
Question 1
Managment by Objectives (MBO's) creation process
Correct Answer
Set objectives
Set supplier targets
monitor supplier performance
Evaluate supplier performance
set objectives to improve performance
Question 2
5 options for condition performance monitoring are?
Correct Answer
Do nothing
reactive
Prevention
Predictive
Proactive
Question 3
Contract termination types
Correct Answer
Performance
Prior agreement
Rescission
Completion
Page 1 of 29
,Question 4
Hidden cost in global sourcing
Correct Answer
Internal Overheads
Transition / mobilisation
Language Barriers
Time Differences
Post contract reveiws
culture differences
Ethical Behaviour
Reputation
Supplier financial position
Exchange rates
Logistics
Lead time
Inventory
Incompatibility
Changes in Duty / taxes
Trade Wars
Question 5
Sourcing process
Correct Answer
Understand the need
develop strategy
raise requisition
source suppliers
issue ITT / RFQ
Negotiate & award contract
SRM/contract management
Page 2 of 29
, Question 6
CSR policies cover
Correct Answer
Legality
Business ethics
Protecting the environment
Protecting people
Charity work
Question 7
Enhance and protect the standing of the proffesion
Correct Answer
Never engaging in unethical or irresponsible sourcing and related activities
Question 8
promote the eradication of unethical business practices
Correct Answer
Regularly and thoroughly conducting due diligence on suppliers, reporting any
concerns and keeping up to date with regulations by expanding knowledge through
CPD
Question 9
Social Impact key objectives
Correct Answer
Create
Strive
Recognise
Measure
Believe
Page 3 of 29
Question 1
Managment by Objectives (MBO's) creation process
Correct Answer
Set objectives
Set supplier targets
monitor supplier performance
Evaluate supplier performance
set objectives to improve performance
Question 2
5 options for condition performance monitoring are?
Correct Answer
Do nothing
reactive
Prevention
Predictive
Proactive
Question 3
Contract termination types
Correct Answer
Performance
Prior agreement
Rescission
Completion
Page 1 of 29
,Question 4
Hidden cost in global sourcing
Correct Answer
Internal Overheads
Transition / mobilisation
Language Barriers
Time Differences
Post contract reveiws
culture differences
Ethical Behaviour
Reputation
Supplier financial position
Exchange rates
Logistics
Lead time
Inventory
Incompatibility
Changes in Duty / taxes
Trade Wars
Question 5
Sourcing process
Correct Answer
Understand the need
develop strategy
raise requisition
source suppliers
issue ITT / RFQ
Negotiate & award contract
SRM/contract management
Page 2 of 29
, Question 6
CSR policies cover
Correct Answer
Legality
Business ethics
Protecting the environment
Protecting people
Charity work
Question 7
Enhance and protect the standing of the proffesion
Correct Answer
Never engaging in unethical or irresponsible sourcing and related activities
Question 8
promote the eradication of unethical business practices
Correct Answer
Regularly and thoroughly conducting due diligence on suppliers, reporting any
concerns and keeping up to date with regulations by expanding knowledge through
CPD
Question 9
Social Impact key objectives
Correct Answer
Create
Strive
Recognise
Measure
Believe
Page 3 of 29
