CIPS L4M1 - Question & Answer Past exam |100% PASS
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Course
2024/2025
Institution
2024/2025
CIPS L4M1 - Question & Answer Past
exam |100% PASS
O1. Outline FIVE differences between purchasing goods and purchasing services. - Answer-1. Goods
are tangible, services are intangible:
2. Services cannot be separated from their supplier:
3. Heterogeneity: goods are usually uniform in nature ...
Discuss THREE benefits of centralising all purchasing activities with those of retaining the present
decentralised structure. (1 of 2) - Answer✔✔-Centralisation' and 'decentralisation' refer to the degree to
which responsibility and authority is delegated. Arguments for centralisation can only be evaluated in
the context of specific organisational environment and might include:
1. Policies & procedures
2. Consolidation of requirements
3. Location
4. Supply market structure
5. Expertise required:
6. Customer demands
O3. A manufacturer of electrically powered tools for the engineering industry consists of four separate
business units, each of which undertakes its own purchasing activities.
Discuss THREE benefits of centralising all purchasing activities with those of retaining the present
decentralised structure. (2 of 2) - Answer✔✔-The benefits of retaining the present de-centralised
structure include:
1. Local responsibility
2. Knowledge of the local environment, culture and customer needs
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