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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q92-Q97):

NEW QUESTION # 92
Which tier of a supply chain would the original equipment manufacturer have the closest relationship with?

A. Tier 3
B. Tier 1
C. No tier
D. Tier 2

Answer: B

Explanation:

As shown in the figure, Tier 1 suppliers directly provide systems or services to the OEM. According to the study guide, the correct answer is Choice B. Reference: LO-2.1; Page 146; Mapping supply chains to achieve supply chain transparency

NEW QUESTION # 93
Ms. Nabila plans to create a CSR plan by involving all internal and external stakeholders of the company. Which TWO key components should she prioritize for the CSR plan?

A. Philanthropic responsibility
B. Refinement
C. Financial Analysis
D. Introduction
E. CSR Strategy

Answer: B,E

Explanation:
Key components of a CSR plan
* CSR assessment
* CSR strategy
* CSR commitment to stakeholder engagement
* Implementation plan and activities
* Verification and evaluation of results
* Refinement
Reference:
LO-1.1; Page 8; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains

NEW QUESTION # 94
While low-cost country sourcing can provide substantial cost savings for buyers, it also comes with significant risks. Which of the following should be avoided as a potential target for low-cost country sourcing?

A. A country with stable tax and tariff structures
B. A country where companies use Just in Time (JIT) method of SCM
C. A country consisting of workers with detailed knowledge of the product
D. A country that is remote geographically but with good transportation routes

Answer: B

Explanation:
Choice B-It is important to calculate the potential cost of a supplier failing to meet the level of service timeline. If a company uses JIT methods of supply chain management, then LCCS is not a suitable option especially for critical components because delivery delays can be costly and disruptive. Without backup inventory, customers may have to wait for the company to receive supplies and manufacture the product. Thus is the correct answer.
Incorrect answer:
Choice A- A country with good transportation routes is critical to analyse as shipping will be fairly economical. Therefore is a potential target for LCCS.
Choice C- Level of education and skills of workers in chosen low cost country will help in producing vital key components as they will specialize in them. Thus this country should be a potential target of LCCS.
Choice D- Tariffs and taxes can significantly impact the cost-effectiveness of sourcing from low-cost countries. Understanding the export taxation in the source country and import tariffs in one's own country is crucial. This being stable can help in calculating and making a decision of selecting a country for low cost sourcing.
Reference:
LO-1.2; Page 76; Low-cost country sourcing

NEW QUESTION # 95
Which term describes the phenomenon where environmental disruptions in the supply chain cause amplified fluctuations in demand or inventory levels as they move upstream?

A. Fairwashing
B. Bluewashing
C. Green Bullwhip Effect
D. Greenwashing

Answer: C

Explanation:
sustainability-related disruptions lead to amplified fluctuations in demand or inventory levels throughout the supply chain.
Incorrect answer:
Option A- Greenwashing refers to the practice of companies misleading consumers about the environmental benefits of their products or operations, without making substantial sustainable improvements.
Option B- Bluewashing refers to a company's attempt to improve its reputation by associating itself with the United Nations or other international organizations without genuine commitment to the causes they claim to support.
Option D- Fairwashing refers to companies falsely claiming to support fair trade practices or other ethical standards to improve their public image without implementing those practices authentically.
Reference:
LO-3.2; Page 282; The benefits and challenges of independent standards in securing ESG objectives in ethical and sustainable procurement and supply arrangements

NEW QUESTION # 96
Mr. Jerry, a procurement professional at a multinational company, notices unusually low labor rates within the supply chain. Which of the following should be his primary concern?

A. Fraudulent activity
B. Corruption
C. Bribe
D. Modern Slavery

Answer: D

Explanation:
Choice A- A procurement professional can evaluate the risk of slavery in their supply chain by considering whether buyers negotiate excessively low prices. If suppliers are pressured to reduce costs, it can negatively impact the finances of businesses involved in raw material production, increasing the likelihood of forced labor. Therefore, Choice A is the correct answer.
Choice B- Corruption is the dishonest or fraudulent behavior of people in power. This could be in the form of a producer bribing an official to get access to more farmland. It does not relate to low labor rates.
Choice C- Bribery is the act of offering money or something valuable to another person to persuade them to do something for you. Therefore is not concerned with labor rates.
Choice D- Fraud is the criminal deception that is designed to give a person or business a financial or personal benefit, ranging from bribes offered during supplier selection to forged checks during financing to fraudulent payments or payment guarantees. This option is not associated with low labor raters thus is not the answer.
Reference:
LO-1.1; Page 45; Issues impacting ethical and sustainable procurement and supply: modern slavery, bribery, corruption, fraud and human rights infringements

NEW QUESTION # 97
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Updated Test L5M5 Dumps Pdf Offer You The Best Valid Dumps Book | Managing Ethical Procurement and Supply (L5M5)

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q92-Q97):

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