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  1. Home
  2. CIPS Certification
  3. L4M6 Exam
  4. CIPS.L4M6.v2025-06-04.q91 Dumps
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Question 1

Agile Cars Ltd is creating a 'lean' business model which involves receiving deliveries of components only when they are required. Which of the following 'wastes' is being removed from the business?

Correct Answer: D
This would reduce inventory (holding stock). Inventory is considered a business waste because it costs money to store stuff (e.g. paying the rent on a warehouse, electricity to light it up etc). If you can reduce the need to store materials and components on site- you reduce costs. You also save time because you get deliveries when you need them- you don't need to allow for staff unpacking things, storing them away, then going back to them later when they need them. For more information on the 7 Business Wastes see p.70. This comes up in a couple of modules, so it's worth remembering.
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Question 2

Which of the following are considered part of the '5 Rights of Procurement'? Select THREE.

Correct Answer: A,B,E
The 5 Rights of procurement are; place, quality, quantity, time, price. (Price and Cost are not the same thing). See p.38
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Question 3

A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyse its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?

Correct Answer: B
In the context of the IT equipment industry,Technologicalfactors are paramount. The rapid pace of technological advancement influences product development, supply chain processes, and market competitiveness. Utilizing the STEEPLED framework, technological considerations would significantly impact the company's supply chain strategy.
As per the CIPS Intelligence Hub:
"STEEPLED analysis is a strategic planning methodology that can be used across all business functions to discover, evaluate, organise, and track external risk."
- CIPS Intelligence Hub: Using STEEPLED analysis to develop your supply chain
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Question 4

Which of the following is a stage in the relationship lifecycle?

Correct Answer: A
The relationship lifecycle typically involves phases such as initiation, development, maturity, and decline.
Decline is the final stage where the relationship's effectiveness diminishes, necessitating review or termination. This aligns with CIPS guidelines, which emphasize monitoring and evaluating relationships over time to identify when changes or termination are required.
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Question 5

Which of the following is a valid reason for ending a relationship with a supplier?

Correct Answer: C
CIPS state the following reasons for the end of supplier relationships; the contract comes to a natural end, the contract is re-tendered, a material breach or the supplier becomes insolvent (p.15) In this case the only valid option is 'the contract has ended'.
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