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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q64-Q69):
NEW QUESTION # 64
A pricing approach in which avalue pointis decided upon and maintained for aprescribed periodis known as what?
- A. Competitive Pricing
- B. Fixed Pricing
- C. Variable Pricing
- D. Cost-Plus Pricing
Answer: B
Explanation:
Fixed pricingmaintains aconstant pricefor a defined period regardless of market changes, providing stability for both buyer and supplier.
Short cited extract: "Fixed pricing - price remains constant for an agreed duration." (L5M7 Study Guide, p.
188)
Reference:CIPS L5M7 Study Guide, p.188.
NEW QUESTION # 65
Which of the following statements aboutsupply chain knowledgeis correct? Select TWO.
- A. Where there is high readiness to use technology, IT use is deliberate and structured.
- B. Where supply chain knowledge is low, there is high collaboration with partners.
- C. Where supply chain knowledge is low, members tend to operate independently of others.
- D. Where technology utilisation is low, systems and policies are consistent.
Answer: A,C
Explanation:
Whenknowledge is low, members workindependently; highertechnological readinesscreates deliberate and structured IT use.
Short cited term: "low knowledge # independent working; high tech readiness # structured IT use." (L5M7 Study Guide, p. 51) Reference:CIPS L5M7 Study Guide, p. 51.
NEW QUESTION # 66
Which of the following is an example ofVariable Pricing?
- A. A retailer holds a January sale.
- B. A wholesaler offers a discount when a customer buys more than 100 units.
- C. A restaurant offers student discounts.
- D. A cleaning firm charges more when demand increases.
Answer: B
Explanation:
Variable Pricingchanges the unit price based onquantity purchased; larger volumes trigger discounts.
Short cited term: "price varies with quantity ordered." (L5M7 Study Guide, pp. 188-191) Reference:CIPS L5M7 Study Guide, pp. 188-191.
NEW QUESTION # 67
Which of the following is an example ofexceedingcustomers' expectations? Select TWO.
- A. A customer orders an item online and it is delivered on the expected day
- B. Providing a free gift when a purchase is made
- C. The price is lower than the customer expected to pay
- D. Providing the item desired in a different colour
Answer: B,C
Explanation:
Meeting expectations (B) is not exceeding them. Exceeding is demonstrated byunexpected extra valuesuch as lower-than-expected priceora free add-on. Short extract: "exceeding expectations-delighting customers with additional/unexpected value." (L5M7 Study Guide, p.121) Reference:L5M7 Study Guide, p.121.
NEW QUESTION # 68
In a typicalSupply Chain Quality Framework (SCQF), which of the following characteristics is likely to feature?
Select THREE.
- A. Procurement
- B. Continuous Improvement
- C. Sustainability
- D. Information
- E. Marketing
Answer: B,C,D
Explanation:
TheSCQFintegrates factors that promote long-term excellence across the chain:leadership, stakeholder commitment, sustainability, information management, and continuous improvement. These underpin effective quality and performance.
Short cited term: "key features include sustainability, information and continuous improvement." (L5M7 Study Guide, p. 34) Reference:CIPS L5M7 Study Guide, p. 34.
NEW QUESTION # 69
......
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