Level 3

Advanced Certificate in Procurement and

Supply Operations

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AC5 - Procurement and
supply relationships

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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 AC5 Exam Exemplar Questions Mar2013

Q1 Question

Individuals in a buying organisation make decisions on the basis of rational and emotional motives.

Which one of the following is the basis for a rational motive for an individual involved in a purchasing
decision?

Answers

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(a) Status

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(b) Perceived risk

(c) Friendship

(d) Reciprocity. [KEY]

Learning outcome: 1.1

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CIPS study guide reference: Page 4

Q2 Question

Which one of the following organisational situations is advantageous for a system of devolved
purchasing?
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Answers

(a) Where low value goods are sourced from a highly competitive market [KEY]

(b) Where there is a high risk of damaging the organisation’s reputation

(c) Where there may be difficulty in controlling an organisation’s costs

(d) Where the key employees are distracted from their primary role by their involvement in buying.
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Learning outcome: 1.2

CIPS study guide reference: Page 6, sections 2.4 and 2.5
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Page 2 of 6 AC5 Exam Exemplar Questions Mar2013

Q3 Question

The technical and design function stakeholders in an organisation have which one of the following
needs?

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(a) Policies for transport, storage and distribution

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(b) Connection to innovative and expert suppliers [KEY]

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(c) Information on products and delivery schedules for promotions

(d) Procedures for the training and development of non-technical staff.

Learning outcome: 1.2

CIPS study guide reference: Page 19, Table 2.1

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Q4 Question

Which one of the following power/interest combinations represents the description ‘keep satisfied’
as an appropriate relationship strategy?

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(a) High power/low interest [KEY]

(b) Low power/high interest

(c) Low interest/low power

(d) Low interest/high power.

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Learning outcome: 1.3

CIPS study guide reference: Page 22, sections 1.3, 2.4 and 2.5
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AC5 Exam Exemplar Questions Mar2013 Page 3 of 6

Q5 Question

Which one of the following represents an organisational support activity in the idea expressed by
Michael Porter in his ‘value chain’?

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(a) Marketing and Sales

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(b) Procurement [KEY]

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(c) Outbound logistics

(d) Services.

Learning outcome: 1.3

CIPS study guide reference: Page 70 -71, section 1.6 to 1.10

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Q6 Question

Which one of the following may lead to the problem of “groupthink” associated with a team working
to solve a complex problem?

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(a) The generation of many creative ideas

(b) Weak personal relationships

(c) Exceptionally high levels of group cohesion [KEY]

(d) Gender, age, ethnic and functional diversity.

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Learning outcome: 1.3

CIPS study guide reference: Page 37, section 2.12 to 2.15
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Page 4 of 6 AC5 Exam Exemplar Questions Mar2013

Q7 Question

Which one of the following is a key characteristic of a partnerships relationship?

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(a) Poor contractual compliance

(b) Mutual dependence [KEY]

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(c) Win-lose negotiation

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(d) Lack of trust.

Learning outcome: 3.1

CIPS study guide reference: Page 37, sections 3.1 and 2.12 to 2.15

Q8 Question

security’ supplier?

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Which one of the following in a portfolio matrix describes the position of a ‘bottleneck’ or ‘strategic

(a) High market complexity/low item importance [KEY]

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(b) Low market complexity/high item importance

(c) Low market complexity/low item importance

(d) High market complexity/high item importance.

Learning outcome: 3.1

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CIPS study guide reference: Page 91, sections 2.10 and 2.11
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AC5 Exam Exemplar Questions Mar2013 Page 5 of 6

Q9 Question

Which one of the following in a supplier perceptions matrix describes the ‘Core’ segment?

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(a) High attractiveness/high value [KEY]

(b) Low attractiveness/high value

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(c) High attractiveness/low value

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(d) Low attractiveness/low value.

Learning outcome: 3.1

CIPS study guide reference: Page 92, sections 3.1 – 3.4

Q10 Question

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Which one of the following is defined by: ‘The use of the computer and telecommunications
technology to enable information to be transferred or exchanged between a buying organisation and
an external supplier directly, without delay or manual intervention’?

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(a) Intranet

(b) Bar Codes

(c) RFID

(d) EDI. [KEY]

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Learning outcome: 3.1

CIPS study guide reference: Page 119 -123, sections 3.3 and 4.1– 4.29
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Page 6 of 6 AC5 Exam Exemplar Questions Mar2013