CIPs L4M1 LO1- Questions and Answers
Supply Chain Network Correct Ans-Evolution of basic supply chain to include all other
parties involved in the entire supply process rather than just one element. A two-way
exchange of information. A one-way flow of good
Supply Chain Network Correct Ans-Evolution of basic supply chain to include all other
parties involved in the entire supply process rather than just one element. A two-way
exchange of information. A one-way flow of goods.
Physical flows Correct Ans-The movement and storage of goods and materials within a
supply chain. These are the tangible parts of supply chain network. Goods flow one way only.
Informational flows Correct Ans-Organisational strategies and the way they are
communicated, the control processes within the network and the standards to which the
chain should work. Information flows two ways.
Difference between supply chain and supply chain networks Correct Ans-Scope: Supply
Chain System: Focuses on the processes, activities, and functions that make up the
operational and tactical aspects of the supply chain. It deals with the day-to-day execution of
tasks. Supply Chain Network: Focuses on the structural and strategic aspects of the supply
chain, including the design and configuration of the supply chain's physical and logistical
components.
Timeframe: Supply Chain System: Concerned with immediate and short-term tasks related to
the flow of goods and information.Supply Chain Network: Addresses longer-term planning
and strategic decisions regarding the setup of the supply chain.
Decision-Making Level: Supply Chain System: Involves decisions made at the operational and
tactical levels by supply chain managers and practitioners.
Supply Chain Network: Involves decisions made at the strategic level by top management,
such as network design, location planning, and partnership strategies.
, CIPs L4M1 LO1- Questions and Answers
What is added value? Correct Ans-Non-cash releasing benefits generated via procurement
processes and supplier relationship management. Also defined as product and service mix
features which the customer values and is therefore prepared to pay extra for.
What is cost? Correct Ans-The amount of money used to make a product or deliver a
service
What is inventory? Correct Ans-Components, raw materials, work in progress, finished
goods and supplies required for the creation of goods and services for the customer. It can
also refer to the number of units and/or value of the stock of goods held by a company
What is logistics? Correct Ans-The movement of something from one place to another
What is purchasing? Correct Ans-The buying of goods and services for a business.
What is quality? Correct Ans-The ability of a product or service to consistently meet or
exceed customer expectations by following set standards.
What is quality assurance? Correct Ans-Planned and systematic activities necessary to
provide adequate confidence that the product or service will meet given requirements.
, CIPs L4M1 LO1- Questions and Answers
What is supply chain? Correct Ans-A channel of goods distribution, which starts with the
supplier of raw materials or components, moves through a operational process to the
distributor and retailer, and finally to the consumer
Procurement Correct Ans-Involves obtaining something either tangible (goods) or
intangible (services). The process begins by identifying a need and is complete once that need
is delivered. It is a strategic function.
tangible Correct Ans-capable of being touched; real, concrete
intangible Correct Ans-unable to be touched or grasped; not having physical presence
Procurement elements Correct Ans-1. Added Value
2. Cost
3. Inventory
4. Logistics
5. Purchasing
6. Quality
7. Supply
8. Waste Management
Strategic Correct Ans-High level planning including setting direction and long term goals.
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