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| Section | Objectives |
|---|---|
| Demand management and value for money | - Balancing cost, quality, and risk - Demand analysis and forecasting - Whole life costing and total cost of ownership |
| Risk, sustainability, and compliance considerations | - Legal and regulatory constraints affecting specifications - Sustainability and ethical sourcing requirements - Managing procurement and supply risks |
| Specification development | - Key performance indicators and measurable requirements - Stakeholder engagement in requirements definition - Types of specifications (input, output, conformance) |
| Understanding and defining business needs | - Role of procurement in identifying and defining needs - Alignment of procurement with organisational objectives |
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178. Frage
When devising a business case for purchasing a new copier, Maria analyses its whole-life costs as following:
Though cost generating activities are identified, she has not categorised the costs. What is the total value of copier's end of life costs?
Antwort: D
Begründung:
Life cycle costing is a key asset management tool that takes into account the whole of life implications of planning, acquiring, operating, maintaining and disposing of an asset.
The process is an evaluation method that considers all ownership and management costs. These include;
- Concept and definition;
- Design and development;
- Manufacturing and installation;
- Maintenance;
- Support services; and
- Retirement, remediation and disposal costs.
End of life costs often comprise of decommissioning, removing and disposal costs. In the copier scenario, the end of life costs equal to removal cost, which is $150.
179. Frage
A procurement manager consolidates the company expense on printing and office supplies into broader range of spend category. Other senior managers are concerned that it may increase company's spend. Is that concern justified?
Antwort: C
Begründung:
Printing and office supplies are often considered as low risk, low value items. Consolidation low value, low risk items into a broader range will dramatically increases the value of the contract and leverage of buying organisation in the negotiation.
Reference:
LO 1, AC 1.1
180. Frage
The bargaining strength of suppliers is likely to be high in which of the following situations? (Select TWO)
Antwort: A,C
Begründung:
Comprehensive and Detailed Explanation (from CIPS L4M2: Supply Market Analysis) Supplier power is high when:
* Few suppliers exist relative to demand # less competition.
* Urgent demand gives suppliers leverage over buyers.
A and D would reduce supplier power; C (educated buyer) also weakens it.
Relevant CIPS L4M2 Sections:
* Porter's Five Forces - supplier power
* Market structure and urgency as power drivers
181. Frage
Which of the following are most likely to negatively affect the suppliers' bargaining power in a specific market? Select TWO that apply:
Antwort: A,C
Begründung:
The bargaining power of supplier is a major determinant of the structure of an industry and also how much profit is available to organisation operating in that industry. Supplier is weak if:
- Substitutes are available and easy to access
- Suppliers are small and fragmented
- The industry is important to the seller
- The sellers' product or service is not an important of the industry's value chain
- The sellers' product or service is undifferentiated
- There are no significant switching costs
- There is no threat of forward integration.
Suppliers may have more power:
- If they are in concentrated numbers compared to buyers.
- If there are high switching costs associated with a move to another supplier.
- If they are able to integrate forward or begin producing the product themselves.
- If they have specific expertise or technology needed to manufacture goods.
- If their product is highly differentiated.
- If there are many buyers and none make up significant portions of sales.
- If there are no substitutes available.
- If there are strong end users who can exert power over the organization in favor of a supplier (This can be the case in labor situations).
In all of these cases, the bargaining power of suppliers is high to demand premium prices and set their own timelines.
LO 2, AC 2.2
182. Frage
What is the output of regression analysis?
Antwort: D
Begründung:
Regression refers to a quantitative measure of the relationship between one or more independent variables and a resulting dependent variable. Regression is of use to professionals in a wide range of fields from science and public service to financial analysis.
To perform a regression analysis, a statistician collects a set of data points, each including a com-plete set of dependent and independent variables. For example, the dependent variable could be a firm's stock price and the independent variables could be the Standard and Poor's 500 index and the national unemployment rate, assuming that the stock is not listed in the S&P 500. The sample set could be each of these three data sets for the past 20 years.
On a chart, these data points would appear as scatter plot, a set of points that may or may not appear to be organized along any line. If a linear pattern is apparent, it may be possible to sketch a line of best fit that minimizes the distance of those points from that line. If no organizing axis is visually apparent, regression analysis can generate a line based on the least squares method. This method builds the line which minimizes the squared distance of each point from the line of best fit.
Line of best fit is one of the most important outputs of regression analysis.
183. Frage
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