최신CIPS Procurement and Supply in Practice - L4M8무료샘플문제
문제1
Describe three benefits of working cross-functionally
Describe three benefits of working cross-functionally
정답:
See the answer in explanation.
Explanation:
Working cross-functionally is the involvement of all departments involved in an organization to contribute knowledge, skills and innovation towards adding value of achieving the organization's strategic goal. All functions may include; procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization.
When working cross functionally, members of the organization gives support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information.
* Refer to the question column for response
Explanation:
Working cross-functionally is the involvement of all departments involved in an organization to contribute knowledge, skills and innovation towards adding value of achieving the organization's strategic goal. All functions may include; procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization.
When working cross functionally, members of the organization gives support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information.
* Refer to the question column for response
문제2
KPI should be written to match which area of an organization?
KPI should be written to match which area of an organization?
정답:
See the answer in explanation.
Explanation:
Key performance indicator (KPI) is another method of monitoring how a supplier is delivering on a contract.
When creating KPIs to manage suppliers and their contracts the areas monitored should be related to the organization's overall strategy that is where organization's success will be measured.
Explanation:
Key performance indicator (KPI) is another method of monitoring how a supplier is delivering on a contract.
When creating KPIs to manage suppliers and their contracts the areas monitored should be related to the organization's overall strategy that is where organization's success will be measured.
문제3
Explain how a lack of understanding of a global supplier's culture and ethical behavior could cost buying organization money.
Explain how a lack of understanding of a global supplier's culture and ethical behavior could cost buying organization money.
정답:
See the answer in explanation.
Explanation:
Organizational culture is made up of behaviors, traits, values and beliefs and these differ signifi-cantly across the globe. Gestures that may be positive in one country can be highly offensive in another. This culture could mean; for example, individualistic/collectivistic, masculine/feminine, uncertainty avoidance, power distance, Time perspective, indulgence/restraint.
When negotiating and forming contracts within the extended supply chain, it is important that the culture of the suppliers is understood to be compatible with the buying organization or else their might be loss of reputation, time, money material and equipment.
Also, being not aware of what is an acceptable ethically behavior in global sourcing can cost a buying organization. In some countries, bribery and kickbacks are a standard part of doing business. If procurement professional is not aware of the fact that some countries methods of doing business involves or expect kickbacks, for example, this could be costly to the organization and cancel out any savings that had originally been seen.
Cost of poor quality and rework: if the product or service quality is poor the organization may not satisfy it customers and this can lead to a loss of reputation in the market. For example, a residential building construction company contracting a supplier that supply would require home owners to reinstall a new door within three months. The organization would spend more funds in carrying out rework.
More administrative cost in contract management: an organization will have to manage it sup-pliers and the contracts to ensure they are delivering what they were contracted to do. A poor con-tract management is a waste in the process of delivery that can lead to loss of money. Also, to cor-rect this would cost the organizations administrative cost.
* Refer to the question column for response
Explanation:
Organizational culture is made up of behaviors, traits, values and beliefs and these differ signifi-cantly across the globe. Gestures that may be positive in one country can be highly offensive in another. This culture could mean; for example, individualistic/collectivistic, masculine/feminine, uncertainty avoidance, power distance, Time perspective, indulgence/restraint.
When negotiating and forming contracts within the extended supply chain, it is important that the culture of the suppliers is understood to be compatible with the buying organization or else their might be loss of reputation, time, money material and equipment.
Also, being not aware of what is an acceptable ethically behavior in global sourcing can cost a buying organization. In some countries, bribery and kickbacks are a standard part of doing business. If procurement professional is not aware of the fact that some countries methods of doing business involves or expect kickbacks, for example, this could be costly to the organization and cancel out any savings that had originally been seen.
Cost of poor quality and rework: if the product or service quality is poor the organization may not satisfy it customers and this can lead to a loss of reputation in the market. For example, a residential building construction company contracting a supplier that supply would require home owners to reinstall a new door within three months. The organization would spend more funds in carrying out rework.
More administrative cost in contract management: an organization will have to manage it sup-pliers and the contracts to ensure they are delivering what they were contracted to do. A poor con-tract management is a waste in the process of delivery that can lead to loss of money. Also, to cor-rect this would cost the organizations administrative cost.
* Refer to the question column for response
문제4
What is Decommissioning?
What is Decommissioning?
정답:
See the answer in explanation.
Explanation:
When a fixed asset reaches the end of its life, it requires decommissioning before reconditioning or disposal.
Decommissioning is to observe all the safety measures and technical procedures and stop active machinery or an asset from operation (example; gas plant, power generator, transformer etc.
Decommissioning process include the following aspect
1) Preparation: Plan the process
2) Dismantle: Take the asset apart and remove hazardous waste
3) Processing: make safe any hazardous waste
4) Disposal: Ensure paper work is received to confirm removal and disposal
Explanation:
When a fixed asset reaches the end of its life, it requires decommissioning before reconditioning or disposal.
Decommissioning is to observe all the safety measures and technical procedures and stop active machinery or an asset from operation (example; gas plant, power generator, transformer etc.
Decommissioning process include the following aspect
1) Preparation: Plan the process
2) Dismantle: Take the asset apart and remove hazardous waste
3) Processing: make safe any hazardous waste
4) Disposal: Ensure paper work is received to confirm removal and disposal
문제5
What advantages could there be to holding excessive inventory?
What advantages could there be to holding excessive inventory?
정답:
See the answer in explanation.
Explanation:
Holding excessive inventory can reduce the impact of extended lead time. i.e. by saving the buying organization from downtime, reputation loss, and also it can generate revenue for the organization if there is a sudden increase in demand.
Explanation:
Holding excessive inventory can reduce the impact of extended lead time. i.e. by saving the buying organization from downtime, reputation loss, and also it can generate revenue for the organization if there is a sudden increase in demand.
문제6
What are the 3Ps in the triple bottom line.
What are the 3Ps in the triple bottom line.
정답:
See the answer in explanation.
Explanation:
Trying to measure how sustainable an organization was use to be challenging undertaking. However, during the 1990s, a concept brought up by American John Elkington change the way sustainability was measured.
This framework is known as the triple bottom line (TBL) and measures sustainability in relation to organizational performance and investment against the 3Ps (1) Profits (2) People (3) Planet. For example; Profit: A packaging manufacturer reinvesting its profits in State- of-the-art recycling machinery for it wasted cardboard.
People: A large privately owned call centre donate its end of life computers to a local youth clubs and social groups to help gain internet cases.
Planet: A driving instructors using only hybrid vehicles to teach her learners, thus to reducing Co2 emission.
* Refer to the question column for response
Explanation:
Trying to measure how sustainable an organization was use to be challenging undertaking. However, during the 1990s, a concept brought up by American John Elkington change the way sustainability was measured.
This framework is known as the triple bottom line (TBL) and measures sustainability in relation to organizational performance and investment against the 3Ps (1) Profits (2) People (3) Planet. For example; Profit: A packaging manufacturer reinvesting its profits in State- of-the-art recycling machinery for it wasted cardboard.
People: A large privately owned call centre donate its end of life computers to a local youth clubs and social groups to help gain internet cases.
Planet: A driving instructors using only hybrid vehicles to teach her learners, thus to reducing Co2 emission.
* Refer to the question column for response
문제7
Explain why the behavior of an organization with which you are familiar could affect its business.
Explain why the behavior of an organization with which you are familiar could affect its business.
정답:
See the answer in explanation.
Explanation:
The social impact of an organization is formed by various behaviors. If an organization; behavior is poor this will create social impact which is likely to be reflected in the business performance. Organizations which display poor behavior face outcomes such as the following.
1. Reduce brand loyalty
2. Difficulty in recruiting
3. Negative media coverage
4. Reduced sales/profit
5. reputation damage
Explanation:
The social impact of an organization is formed by various behaviors. If an organization; behavior is poor this will create social impact which is likely to be reflected in the business performance. Organizations which display poor behavior face outcomes such as the following.
1. Reduce brand loyalty
2. Difficulty in recruiting
3. Negative media coverage
4. Reduced sales/profit
5. reputation damage
문제8
Write all of factors that contribute towards value for a product that you regularly purchase.
Write all of factors that contribute towards value for a product that you regularly purchase.
정답:
See the answer in explanation.
Explanation:
Factors that contribute towards value for clothe gum in a fashion firm;
1) How much money does the gum cost?
2) How much is the benefits of using the clothe gum?
3) Does customers prefer clothe gum at the bottom of their garment?
4) Is the clothe gum difficult to use?
5) Does the clothe gum beautifies the fabric when placed properly?
6) Does it give a better finishing?
7) Is it ethical to use?
8) Is it from a sustainable source?
9) is it environmental friendly?
10) Does using clothe gum suggest innovation in fashion?
Explanation:
Factors that contribute towards value for clothe gum in a fashion firm;
1) How much money does the gum cost?
2) How much is the benefits of using the clothe gum?
3) Does customers prefer clothe gum at the bottom of their garment?
4) Is the clothe gum difficult to use?
5) Does the clothe gum beautifies the fabric when placed properly?
6) Does it give a better finishing?
7) Is it ethical to use?
8) Is it from a sustainable source?
9) is it environmental friendly?
10) Does using clothe gum suggest innovation in fashion?
문제9
Which type of power is most likely to be used in corruption?
Which type of power is most likely to be used in corruption?
정답:
See the answer in explanation.
Explanation:
The abuse of power within the supply chain can be linked to corruption. If individuals with seniority favor one supplier over another, they can exercise their power to award the contract to whoever they wish.
According to CIPS code of conduct, this is not ac-ceptable.
According to French and Raven, there are five types of power (Legitimate power, Re-ward, Expert, Referent and Coercive), and these powers can most likely be used in corruption.
Explanation:
The abuse of power within the supply chain can be linked to corruption. If individuals with seniority favor one supplier over another, they can exercise their power to award the contract to whoever they wish.
According to CIPS code of conduct, this is not ac-ceptable.
According to French and Raven, there are five types of power (Legitimate power, Re-ward, Expert, Referent and Coercive), and these powers can most likely be used in corruption.
문제10
Maximum Score: 25
Examine FIVE methods OrganiBake could use to monitor suppliers' performance against Environmental, Social and Governance (ESG) principles.
(25 marks)
OrganiBake, a rapidly growing bakery business specialising in organic and sustainably sourced goods, is experiencing a significant increase in consumer demand. To meet this demand, OrganiBake needs to significantly expand its production capabilities, which will involve forging closer relationships with its network of ingredient suppliers. The Chief Procurement Officer (CPO) at OrganiBake is aware that the company's brand reputation is built on its commitment to ethical and sustainable practices throughout its supply chain, from sourcing organic grains to packaging its final products. The CPO is concerned that scaling up production volumes quickly might expose OrganiBake to additional Environmental, Social and Governance (ESG) risks within its extended supply chain. The CPO recognises the critical need for transparent and consistent communication with suppliers to maintain robust ESG standards as they grow.
Recent scrutiny from environmental groups has raised concerns regarding the industry's water usage and potential pesticide runoff associated with some grain suppliers' farming practices. Allegations have also surfaced about unfair labour practices in the industry and low wages at key suppliers Of packaging materials. OrganiBake's current reliance on a basic supplier self-assessment questionnaire for ESG assessment is now considered to be insufficient to provide the proactive monitoring required to manage these increasingly complex supply chain sustainability challenges effectively.
The CPO understands the need to move beyond a simple self-assessment questionnaire to ensure the viability of suppliers and mitigate reputational risks.
Maximum Score: 25
Examine FIVE methods OrganiBake could use to monitor suppliers' performance against Environmental, Social and Governance (ESG) principles.
(25 marks)
OrganiBake, a rapidly growing bakery business specialising in organic and sustainably sourced goods, is experiencing a significant increase in consumer demand. To meet this demand, OrganiBake needs to significantly expand its production capabilities, which will involve forging closer relationships with its network of ingredient suppliers. The Chief Procurement Officer (CPO) at OrganiBake is aware that the company's brand reputation is built on its commitment to ethical and sustainable practices throughout its supply chain, from sourcing organic grains to packaging its final products. The CPO is concerned that scaling up production volumes quickly might expose OrganiBake to additional Environmental, Social and Governance (ESG) risks within its extended supply chain. The CPO recognises the critical need for transparent and consistent communication with suppliers to maintain robust ESG standards as they grow.
Recent scrutiny from environmental groups has raised concerns regarding the industry's water usage and potential pesticide runoff associated with some grain suppliers' farming practices. Allegations have also surfaced about unfair labour practices in the industry and low wages at key suppliers Of packaging materials. OrganiBake's current reliance on a basic supplier self-assessment questionnaire for ESG assessment is now considered to be insufficient to provide the proactive monitoring required to manage these increasingly complex supply chain sustainability challenges effectively.
The CPO understands the need to move beyond a simple self-assessment questionnaire to ensure the viability of suppliers and mitigate reputational risks.
정답:
See the answer in explanation.below.
Explanation:
4. Examine FIVE methods OrganiBake could use to monitor suppliers' performance against Environmental, Social and Governance (ESG) principles. (25 marks) OrganiBake currently relies on a basic supplier self-assessment questionnaire, but this is no longer enough as the business grows and faces greater ESG risks. To protect its brand reputation and manage risks such as water use, pesticide runoff and unfair labour practices, OrganiBake needs stronger and more proactive supplier monitoring methods. CIPS defines supplier performance management as assessing supplier activities against agreed KPIs and managing supplier performance, while ISO 20400 provides guidance on integrating sustainability into procurement. ( cips.org )
1. Supplier audits and site visits
One effective method is to carry out regular supplier audits and on-site inspections . These can be announced or unannounced and allow OrganiBake to check whether suppliers are actually following ESG requirements in practice, rather than simply claiming compliance on paper. For grain suppliers, audits could review water management, chemical handling and environmental controls. For packaging suppliers, audits could examine working conditions, pay practices, health and safety, and management controls. This method is stronger than a questionnaire because it provides direct evidence and helps verify whether policies are being implemented properly. OECD due diligence guidance highlights supplier assessments and monitoring mechanisms as part of responsible supply chain management. ( OECD )
2. ESG KPIs and supplier scorecards
A second method is to introduce measurable ESG key performance indicators (KPIs) and use supplier scorecards. OrganiBake could track indicators such as water consumption, pesticide incidents, waste levels, carbon emissions, employee turnover, accident rates, wage compliance, audit closure rates and ethics breaches. These KPIs should be reported regularly and reviewed in supplier performance meetings. This gives OrganiBake a structured way to compare suppliers, identify weak performance early and measure improvement over time. It is particularly useful because the business is scaling up and needs transparent, consistent communication with suppliers. CIPS recognises supplier performance monitoring against agreed KPIs, and ISO 20400 supports the use of criteria and performance measures in sustainable procurement. ( cips.
org )
3. Contractual ESG requirements with regular reporting
A third method is to include clear ESG clauses in contracts and require periodic evidence-based reporting from suppliers. For example, OrganiBake could require suppliers to comply with a supplier code of conduct, labour standards, anti-corruption expectations, environmental controls and corrective action obligations.
Suppliers could then be required to submit supporting data, certificates, payroll evidence, water-use records or environmental reports at agreed intervals. This strengthens monitoring because ESG performance becomes a contractual obligation rather than a voluntary statement. It also gives OrganiBake leverage if a supplier fails to meet expected standards. OECD guidance emphasises corrective action plans and due diligence measures, while practice examples under the UN Global Compact show ESG requirements being embedded into sourcing and reporting processes. ( OECD )
4. Third-party verification and external assurance
A fourth method is to use independent third-party verification . This could involve external auditors, certification bodies or recognised ESG rating platforms to assess supplier performance more objectively. This is valuable because self-reported information can sometimes be incomplete or biased. Independent review can improve credibility, especially where OrganiBake faces scrutiny from environmental groups and reputational risk from consumers. External assurance is particularly useful for high-risk areas such as environmental claims, labour standards and governance controls. Examples reported through the UN Global Compact show selected sustainability KPIs being externally assured, demonstrating how third-party validation can strengthen confidence in reported ESG performance. ( cop.unglobalcompact.org )
5. Grievance mechanisms, stakeholder feedback and ongoing risk monitoring A fifth method is to establish grievance channels and continuous risk monitoring . This means OrganiBake should not depend only on supplier-submitted data; it should also collect information from workers, local communities, NGOs, industry alerts and media screening. For example, if there are allegations of low wages or pesticide runoff, the company should have a process for receiving complaints, investigating them and requiring corrective action. This method is useful because some ESG problems, especially labour abuse or environmental harm, may not be visible in formal reports. OECD due diligence materials identify grievance mechanisms, stakeholder engagement and early-warning systems as important elements of supply chain monitoring and evaluation. ( OECD ) Conclusion In conclusion, OrganiBake should move beyond basic self-assessment questionnaires and adopt a broader ESG monitoring system. The five main methods are supplier audits and site visits, ESG KPIs and scorecards, contractual ESG reporting requirements, third-party verification, and grievance plus ongoing risk monitoring . Together, these methods would give OrganiBake more reliable information, help manage reputational and supply chain risks, and support the company's commitment to ethical and sustainable growth. ( cips.org )
Explanation:
4. Examine FIVE methods OrganiBake could use to monitor suppliers' performance against Environmental, Social and Governance (ESG) principles. (25 marks) OrganiBake currently relies on a basic supplier self-assessment questionnaire, but this is no longer enough as the business grows and faces greater ESG risks. To protect its brand reputation and manage risks such as water use, pesticide runoff and unfair labour practices, OrganiBake needs stronger and more proactive supplier monitoring methods. CIPS defines supplier performance management as assessing supplier activities against agreed KPIs and managing supplier performance, while ISO 20400 provides guidance on integrating sustainability into procurement. ( cips.org )
1. Supplier audits and site visits
One effective method is to carry out regular supplier audits and on-site inspections . These can be announced or unannounced and allow OrganiBake to check whether suppliers are actually following ESG requirements in practice, rather than simply claiming compliance on paper. For grain suppliers, audits could review water management, chemical handling and environmental controls. For packaging suppliers, audits could examine working conditions, pay practices, health and safety, and management controls. This method is stronger than a questionnaire because it provides direct evidence and helps verify whether policies are being implemented properly. OECD due diligence guidance highlights supplier assessments and monitoring mechanisms as part of responsible supply chain management. ( OECD )
2. ESG KPIs and supplier scorecards
A second method is to introduce measurable ESG key performance indicators (KPIs) and use supplier scorecards. OrganiBake could track indicators such as water consumption, pesticide incidents, waste levels, carbon emissions, employee turnover, accident rates, wage compliance, audit closure rates and ethics breaches. These KPIs should be reported regularly and reviewed in supplier performance meetings. This gives OrganiBake a structured way to compare suppliers, identify weak performance early and measure improvement over time. It is particularly useful because the business is scaling up and needs transparent, consistent communication with suppliers. CIPS recognises supplier performance monitoring against agreed KPIs, and ISO 20400 supports the use of criteria and performance measures in sustainable procurement. ( cips.
org )
3. Contractual ESG requirements with regular reporting
A third method is to include clear ESG clauses in contracts and require periodic evidence-based reporting from suppliers. For example, OrganiBake could require suppliers to comply with a supplier code of conduct, labour standards, anti-corruption expectations, environmental controls and corrective action obligations.
Suppliers could then be required to submit supporting data, certificates, payroll evidence, water-use records or environmental reports at agreed intervals. This strengthens monitoring because ESG performance becomes a contractual obligation rather than a voluntary statement. It also gives OrganiBake leverage if a supplier fails to meet expected standards. OECD guidance emphasises corrective action plans and due diligence measures, while practice examples under the UN Global Compact show ESG requirements being embedded into sourcing and reporting processes. ( OECD )
4. Third-party verification and external assurance
A fourth method is to use independent third-party verification . This could involve external auditors, certification bodies or recognised ESG rating platforms to assess supplier performance more objectively. This is valuable because self-reported information can sometimes be incomplete or biased. Independent review can improve credibility, especially where OrganiBake faces scrutiny from environmental groups and reputational risk from consumers. External assurance is particularly useful for high-risk areas such as environmental claims, labour standards and governance controls. Examples reported through the UN Global Compact show selected sustainability KPIs being externally assured, demonstrating how third-party validation can strengthen confidence in reported ESG performance. ( cop.unglobalcompact.org )
5. Grievance mechanisms, stakeholder feedback and ongoing risk monitoring A fifth method is to establish grievance channels and continuous risk monitoring . This means OrganiBake should not depend only on supplier-submitted data; it should also collect information from workers, local communities, NGOs, industry alerts and media screening. For example, if there are allegations of low wages or pesticide runoff, the company should have a process for receiving complaints, investigating them and requiring corrective action. This method is useful because some ESG problems, especially labour abuse or environmental harm, may not be visible in formal reports. OECD due diligence materials identify grievance mechanisms, stakeholder engagement and early-warning systems as important elements of supply chain monitoring and evaluation. ( OECD ) Conclusion In conclusion, OrganiBake should move beyond basic self-assessment questionnaires and adopt a broader ESG monitoring system. The five main methods are supplier audits and site visits, ESG KPIs and scorecards, contractual ESG reporting requirements, third-party verification, and grievance plus ongoing risk monitoring . Together, these methods would give OrganiBake more reliable information, help manage reputational and supply chain risks, and support the company's commitment to ethical and sustainable growth. ( cips.org )
문제11
Describe one implied term and one expressed term from a contract with which you are familiar.
Describe one implied term and one expressed term from a contract with which you are familiar.
정답:
See the answer in explanation.
Explanation:
Terms are the right and duties agreed between parties which are then documented in contract. Terms can be implied or expressed.
Implied terms are always present in a contract and are set by national laws; implied terms do not have to be written or verbally agreed : they always exist, for example sales of Gods Act, good being fit for purpose, Negligence ,confidence , whereas expressed terms are negotiated and agreed rather than being automatically included, express terms are agreed between, parties negotiating the contract. For example; payment terms, specification, delivery details and quantities.
Explanation:
Terms are the right and duties agreed between parties which are then documented in contract. Terms can be implied or expressed.
Implied terms are always present in a contract and are set by national laws; implied terms do not have to be written or verbally agreed : they always exist, for example sales of Gods Act, good being fit for purpose, Negligence ,confidence , whereas expressed terms are negotiated and agreed rather than being automatically included, express terms are agreed between, parties negotiating the contract. For example; payment terms, specification, delivery details and quantities.
문제12
Create two KPIs and two SLAs for a contract with which you are familiar.
Create two KPIs and two SLAs for a contract with which you are familiar.
정답:
See the answer in explanation.
Explanation:
Key performance Indicators (KPIs) and service level Agreement (SLA) are measures that demon-strate the effectiveness of a supplier. By using KPIs and SLAs as part of suppliers management, procurement professionals can monitor and evaluate performance and identify areas that need attention or improvement.
KPIs and SLAs are used for product and service contract respectively.
Two KPI
1) Number of defects: Not more than two defects is allowed on the generator and its accessories
2) Supplier Lead Time: Delivery after placing order should not be anytime longer than 14 days.
Two SLAs
1) The toilet should be washed with soap, and deodorant should be sprayed twice a day
2) Bathroom and toilet should not be allowed to smell out to the passage. Bathroom smelling out to the passage twice a month is a violation of the contract.
Explanation:
Key performance Indicators (KPIs) and service level Agreement (SLA) are measures that demon-strate the effectiveness of a supplier. By using KPIs and SLAs as part of suppliers management, procurement professionals can monitor and evaluate performance and identify areas that need attention or improvement.
KPIs and SLAs are used for product and service contract respectively.
Two KPI
1) Number of defects: Not more than two defects is allowed on the generator and its accessories
2) Supplier Lead Time: Delivery after placing order should not be anytime longer than 14 days.
Two SLAs
1) The toilet should be washed with soap, and deodorant should be sprayed twice a day
2) Bathroom and toilet should not be allowed to smell out to the passage. Bathroom smelling out to the passage twice a month is a violation of the contract.
문제13
Describe two negative factors associated with ordering excess inventory.
Describe two negative factors associated with ordering excess inventory.
정답:
See the answer in explanation.
Explanation:
In the decision to not run out of supplies, organizations can anticipate a peak were by it products will be in a high demand or a period of scarcity of raw materials and may want to increase the in-ventory. However, if this forecast is not accurate, it may lead the organization to holding excess inventory. This can expose the organization to some negative factors.
Acquisition Cost: The organization will incur an acquisition cost for the excess inventory which is inclusive of the cost of placing the order and the cost of purchasing the goods.
Holding Cost: The organization will spend more money holding the stock, trying to keep it in good condition by providing the required light, temperature, skilled handlers and so on.
Working Capital not adding value: This will off shoot the holding cost. Also valuable working capital in excess stock which in the time not adding value, can affect the liquidity of the business. This is also an opportunity cost and increase solvency.
* Refer to the question column for response
Explanation:
In the decision to not run out of supplies, organizations can anticipate a peak were by it products will be in a high demand or a period of scarcity of raw materials and may want to increase the in-ventory. However, if this forecast is not accurate, it may lead the organization to holding excess inventory. This can expose the organization to some negative factors.
Acquisition Cost: The organization will incur an acquisition cost for the excess inventory which is inclusive of the cost of placing the order and the cost of purchasing the goods.
Holding Cost: The organization will spend more money holding the stock, trying to keep it in good condition by providing the required light, temperature, skilled handlers and so on.
Working Capital not adding value: This will off shoot the holding cost. Also valuable working capital in excess stock which in the time not adding value, can affect the liquidity of the business. This is also an opportunity cost and increase solvency.
* Refer to the question column for response
문제14
What topics are covered within ethics?
What topics are covered within ethics?
정답:
See the answer in explanation.
Explanation:
Topics that are covered within ethics are;
1. Environmental factors
2. The triple bottom line: profit, people and planet
3. Adopting sustainable practice.
4. considering the social impact of organization's behaviors
Explanation:
Topics that are covered within ethics are;
1. Environmental factors
2. The triple bottom line: profit, people and planet
3. Adopting sustainable practice.
4. considering the social impact of organization's behaviors
문제15
What is PQQ and what does it include?
What is PQQ and what does it include?
정답:
See the answer in explanation.
Explanation:
Pre-qualification questionnaire (PQQ) is often standard forms that buyers send to po-tential suppliers. The purpose is to ensure that these potential suppliers could, if they win the contract, supply the product or service to the standard required. PQQ includes requesting details from the potential suppliers on the following information
1. Company Details
2. Environment policies
3. Trading history
4. Ethical policies
5. Financial information
6. Health and safety policies
7. Quality standards
8. References
9. Insurance.
Explanation:
Pre-qualification questionnaire (PQQ) is often standard forms that buyers send to po-tential suppliers. The purpose is to ensure that these potential suppliers could, if they win the contract, supply the product or service to the standard required. PQQ includes requesting details from the potential suppliers on the following information
1. Company Details
2. Environment policies
3. Trading history
4. Ethical policies
5. Financial information
6. Health and safety policies
7. Quality standards
8. References
9. Insurance.