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| Section | Objectives |
|---|---|
| Topic 1: Understand market management in procurement and supply | - Compare the competitive forces that influence markets
|
| Topic 2: Understand the use of specifications in procurement and supply | |
| Topic 3: Understand how to develop a business case for requirements to be sourced from external suppliers | - Analyse how market factors affect procurement |
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質問 # 299
Which of the following factors would mean a buyer had high bargaining power in a competitive market?
Select TWO that apply.
正解：C、E
解説：
Bargaining power in a market refers to how much influence either buyers or suppliers have in commercial negotiations. Buyers gain power when they have many options and can influence terms.
According to the CIPS L4M2 Study Guide, Chapter 2: Market Management, buyer power is increased when:
"There are many alternative suppliers or substitute products, switching costs are low, and the buyer is large or purchases in high volumes." Let's examine each option:
* A. High switching costs for the buyer - This reduces buyer flexibility and thus decreases bargaining power.
* B. Many substitute products are available - This increases buyer power, as buyers have more alternatives and are less dependent on any single supplier.
* C. Products are highly differentiated - This gives more power to the supplier, as the buyer has fewer equivalent options.
* D. Buyers are procuring a low volume of products - Smaller volume buyers typically have less power to influence terms.
* E. Buyers are demanding large volumes - Large-volume purchasing gives buyers greater leverage, as suppliers are motivated to win or retain their business.
The correct answers are B (Many substitute products are available) and E (Buyers are demanding large volumes).
CIPS Study Guide Reference:
* Module: L4M2 - Defining Business Needs
* Chapter 2: Market Management
* Section: Porter ' s Five Forces - Buyer Bargaining Power
質問 # 300
Ranjit is purchasing a large piece of laboratory equipment which is brand new to the market. Can this be classified as a straight re-buy?
正解：D
解説：
Comprehensive and Detailed Explanation (paraphrased from CIPS L4M2 content) CIPS uses the classic buying situation model:
* New buy - first time the item is purchased; high information need and perceived risk.
* Straight re-buy - routine repurchase of a product that has been bought before and is well-known.
* Modified re-buy - a repeat purchase with some changes (e.g. spec, price, supplier).
Here, the equipment is brand new to market, meaning:
* It has not been purchased before by the organisation.
* There is no previous sourcing history for this specific product, so it cannot be a straight re-buy.
Thus:
* Option D is correct - it is not a straight re-buy because it has not been specified or sourced before.
* Option A is incorrect - even if the supplier has been used before, the product is new.
* Option B - there cannot be an "existing specification" for something new to the market; if there is, it would be a modified or straight re-buy, not a new product situation.
* Option C - a standing purchase agreement would imply established purchasing arrangements: that contradicts "brand new to market".
Relevant CIPS L4M2 areas:
* Buying situations: new buy, straight re-buy, modified re-buy
* Implications for information gathering, evaluation and risk
* How new products affect sourcing and market management
質問 # 301
Which of the following agencies can produce a technical standard?
正解：C
解説：
Technical standards are often produced by a national or international body such as British Standard Institute (BSI) LO 3, AC 3.1
質問 # 302
A company is evaluating two investment projects: Project A and Project B. Project A has a high initial cost but generates substantial cash flows over time. Project B has a lower initial cost but generates modest cash flows consistently. The company's cost model indicates a payback period of three years for Project A and a payback of four years for Project B. Which of the following statements is correct regarding the cost models and cash flow profiling for these projects?
正解：B
解説：
Detailed Explanation:Project A's shorter payback period means the initial investment is recovered more quickly, which is often preferred in cost models. The higher initial cost is offset by substantial cash flows, making it the more viable option based on ROI. Reference: CIPS Level 4, Investment Appraisal Techniques.
質問 # 303
Which of the following methods will enable a company to eliminate waste, lost time and lost material from its processes?
正解：B
解説：
Lean design is about maximising the value that a customer receives and at the same time minimis-ing waste in delivering that value.
For an organisation to be 'lean' it must have had all non-essential resources removed (ie. anything that does not add value, see below). This is efficient and cost effective, in that the value/supply chain can theoretically do exactly what is needed of it and no more, but requires sound forecasting and planning of demand and supply. It is most suitable for industries with stable product specifications, long lead times and few impulse purchases.
Organisations which are 'agile' react as quickly as is practicable to provide a cost effective response to customer demand. This is based on flexibility in design, supply, production and distribution. It is most appropriate for products such as fast fashion and foodstuffs which must be on display and available when wanted by the customer.
Reference:
- CIPS study guide page 153-156
- Agile Supply (cips.org)
LO 3, AC 3.3
質問 # 304
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