Level 2

Certificate in Procurement and

Supply Operations

NS
NC5 - Procurement and
supply stakeholders

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EXAM EXEMPLAR QUESTIONS
MULTIPLE CHOICE QUESTIONS AND ANSWERS
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The correct answer will be identified as the [KEY]

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Page 1 of 6 NC5 Exam Exemplar Questions Mar2013

Q1 Question

Which of the following is a correct definition of stakeholders in procurement and supply?

Answers

(a) Short term and long term suppliers together with any suppliers that they may have

(b) Individuals, groups or organisations affected by the purchasing decisions made [KEY]

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(c) Shareholders and all parts of an organisation that contribute to or benefit from a purchase

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(d) The whole supply chain for a product, including suppliers and customers.

Learning outcome: 1.1

CIPS study guide reference: Page 1

Q2 Question

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Which of the following internal customer groups is involved when high value capital equipment is
required?

Answers

(a) Production, marketing, sales

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(b) Administration, managing director

(c) Local community, finance, marketing

(d) Finance, production, senior management, design and engineering. [KEY]

Learning outcome: 1.2

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CIPS study guide reference: Page 14 - 17

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Page 2 of 6 NC5 Exam Exemplar Questions Mar2013

Q3 Question

Which of the following types of relationship requires the lowest supplier commitment?

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(a) Transactional relationships [KEY]

(b) Partnership relationships

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(c) Tender-based relationships

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(d) Strategic relationships.

Learning outcome: 2.1

CIPS study guide reference: Page 346

Q4 Question

trading concessions and gains?

Answers
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Which of the following is a conflict handling style described as the use of bargaining with each party

(a) Determining
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(b) Accommodating

(c) Synchronising

(d) Compromising. [KEY]

Learning outcome: 2.2

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CIPS study guide reference: Page 42, section 1.4

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NC5 Exam Exemplar Questions Mar2013 Page 3 of 6

Q5 Question

Which of the following is a description of the quality control approach to managing supply quality?

Answers

(a) Reliance on a business philosophy of continuous improvement

(b) Reliance on prevention of defects from occurring

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(c) Reliance on inspection of materials and goods [KEY]

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(d) Reliance on writing specifications which meet international standards.

Learning outcome: 3.1

CIPS study guide reference: Page 73, section 3.1

Q6 Question

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(a) Total quality management

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Which of the following is used as part of statistical process control?
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(b) Control charts [KEY]

(c) Force field analysis

(d) ISO14001.

Learning outcome: 3.3

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CIPS study guide reference: Page 91, section 2

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Page 4 of 6 NC5 Exam Exemplar Questions Mar2013

Q7 Question

Which of the following activities would result in a conflict of interest?

Answers

(a) Asking a new supplier to quote for business rather than the supplier which has been used for
ten years

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(b) Giving a contract to a business which has a family connection to the purchaser [KEY]

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(c) Paying a higher monthly payment for a bank loan because of changes in the local bank rate

(d) Arguing with a supplier because the product does not meet the specification provided with the
order.

Learning outcome: 4.1

CIPS study guide reference: Page 100, section 2.6 - 2.9

Q8 Question

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Which of the following is a principle of ethical standards?

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(a) Supplier quotes will be available for all bidders to see

(b) Suppliers will always pay for hospitality

(c) Purchasers will always give suppliers a second chance

(d) Child labour is not to be used by suppliers. [KEY]

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Learning outcome: 4.2

CIPS study guide reference: Page 104, section 5.7
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NC5 Exam Exemplar Questions Mar2013 Page 5 of 6

Q9 Question

Which of the following features in codes for sustainable procurement?

Answers

(a) A commitment to consider the total life-cycle environmental impact of a

product [KEY]

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(b) A commitment to reduce the supplier base

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(c) A commitment to eliminate tenders for large value contracts

(d) A commitment to provide a full cost breakdown of the retail price to consumers.

Learning outcome: 4.2

CIPS study guide reference: Page 105, section 6.1-6.5

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Q10 Question

Which of the following describes the principle of delegated authority for procurement?

Answers

(a) Allowing suppliers to amend the purchase price during a contract period
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(b) Allowing suppliers to substitute alternative products to the ones ordered

(c) Allowing a purchaser authority to place orders within stated limits [KEY]

(d) Allowing a work colleague to cover the purchasing tasks whist the purchaser is on holiday.

Learning outcome: 4.3

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CIPS study guide reference: Page 118, section 2.13

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Page 6 of 6 NC5 Exam Exemplar Questions Mar2013