CIPS L3M2 - Ethical Procurement and Supply

Explanation

Suppliers entertain to retain or generate business - there is a cost to this, which is recovered from customers - the antithesis of value for money. Late bids are sometimes related to inflated prices and instances of malpractice. A late bid is extremely unlikely to increase value for money in the long term and is a serious breach of organisational procedure.

Explanation

Reverse e-auction.

This term is used in your syllabus.

Explanation

The correct answer is 'tolerances'. The tighter the tolerance ie the more restrictive the specification, the more challenging for a supplier to deliver, and the more costly it is likely to become.

Explanation

SPQR is a symbol of the Roman Empire, not a quality management concept.

Failure Mode and Effects Analysis, Total Quality Management and Statistical Process Control are all concepts which relate to quality management.

Explanation

This is the notion that the way people behave (and are treated) inside the organisation is likely to reflect the way they behave to others outside the organisation.

Explanation

Disassociate is the correct answer.

This is the 4 D's model of how to deal with a conflict of interest.

'Discombobulate' means to disconcert or confuse, as if you didn't know.

Explanation

Lifetime costing, TCO and whole life costing are essentially the same concept - looking at buying based on total costs over the useful life of an asset, not just the purchase price. Although this con-cept seems obvious once you know it, very many people, including senior managers as well as politi-cians, seem to be unfamiliar with the notion.