[Jan 18, 2025] L4M2 Exam Dumps PDF Guaranteed Success with Accurate & Updated Questions [Q66-Q87]

Rate this post

[Jan 18, 2025] L4M2 Exam Dumps PDF Guaranteed Success with Accurate & Updated Questions

Pass L4M2 Exam – Real Test Engine PDF with 239 Questions

CIPS L4M2 (Defining Business Needs) Certification Exam is highly respected in the industry and is recognized by employers around the world. Individuals who pass this certification exam are highly sought after by employers who are looking for skilled and knowledgeable professionals to help them succeed in their business endeavors. Whether you are just starting out in your career or are looking to advance to the next level, the CIPS L4M2 (Defining Business Needs) Certification Exam is an excellent way to demonstrate your expertise and commitment to your profession.

Preparing for the CIPS L4M2 exam requires a substantial amount of study and preparation. Candidates are advised to read widely, attend relevant training courses or webinars, and review past exam papers to familiarize themselves with the types of questions that may be asked. By achieving a successful result in L4M2 exam, candidates will demonstrate their ability to effectively define business needs, which is a critical component of successful procurement and supply chain management.

NEW QUESTION 66
What is the output of regression analysis?

Forecasting process

Dependent variables

Line of best fit

Independent variables

NEW QUESTION 67
Apple’s CPO is planning a budget for purchasing carbon-free aluminium next year. There are 27.4 tonnes of aluminum in stock, while Apple will need 200 tonnes for production next year and double inventory for production in the following year. How much aluminum will Apple need to purchase in next year?

172.6 tonnes

117.8 tonnes

282.2 tonnes

227.4 tonnes

NEW QUESTION 68
Which of the following statements is the best definition of ‘value engineering?

Analysing perceived value after the product is available for sale

Building value into a new product from design stage onwards

Producing good value products right first time.

Value achieved by an engineering department

NEW QUESTION 69
An automotive manufacturer is sourcing rubber components from Company A.
The specification given to the supplier state that the component should be 1 meter long, without mentioning the tolerance. Enthusiast with the opportunity, engineers at Company A work hard to cut the components with tolerance at only +/- 1mm. The head and tail of the component is then joined together to form a circular band. After that it is stretched over another component. To fit this purpose, the rubber component can be at any length from 80cm to 110cm. This is an example of…?

Defects

Waiting

Unnecessary motion

Over processing

NEW QUESTION 70
Which of the following are prerequisites to run a successful bidding process? Select TWO that apply:

The value of the purchase must be high enough to justify the associated bidding costs of potential suppliers

The market contains an adequate number of suitably qualified suppliers

Only those suppliers who have worked with the buyer in the past are allowed to bid

Bids must be submitted within twenty calendar days

The requirement can be met without the need for subcontracting

NEW QUESTION 71
Which of the following is the disadvantage of embedding standards in a specification?

Standards do not improving buyer’s bargaining power

Embedding standards into specification requires enormous time and effort

Standards are too static and discourage innovation

Standards are too flexible and may cause ambiguity in the specification

NEW QUESTION 72
A procurement manager has noticed that profitability within a market has increased steadily over the years. In addition, the market is relatively easy to enter, and demand within the market is predicted to remain high.
Which of the following is likely to happen in this particular market as a direct consequence of these factors?

Buyers will switch to a different market

The market will attract new entrants

Suppliers will invest more heavily in technology

The regulator will intervene and establish pricing controls

NEW QUESTION 73
Which of the following is the process for improving the value of a new product or service?

Value engineering

Porter’s Five Forces

Planning and design

Value analysis

NEW QUESTION 74
A drawing is an example of…?

Statements of work

Technical specifications

Output specifications

Outcome specifications

NEW QUESTION 75
Procurement provides the following information to a business case …

Estimated costs of bought-in goods

Engineering specifications

Service level requirements

Internal recruitment requirements

NEW QUESTION 76
A company is evaluating two investment projects: Project A and Project B. Project A has a high initial cost but generates substantial cash flows over time. Project B has a lower initial cost but generates modest cash flows consistently. The company’s cost model indicates a payback period of three years for Project A and a payback of four years for Project B. Which of the following statements is correct regarding the cost models and cash flow profiling for these projects?

Project A has a shorter payback period, making it a quicker return on investment compared to Project B

Project A’s higher initial cost is a disadvantage, and its payback period should be extended for better profitability

Project B’s lower initial cost allows for faster profit realisation, making it the better investment choice

Project B’s modest and consistent cash flows make it a risky investment option due to a longer payback period

NEW QUESTION 77
A buyer can use sources of information to review indirect costs associated with the manufacture of goods to support supplier negotiations. Is this statement true?

Yes, because indirect costs are always variable

No, because the only information available is for direct costs

No, because the supplier’s quotation is the only source of information

Yes, because the buyer can understand the cost build-up of the goods

NEW QUESTION 78
Which of the following would a buyer include when issuing an output specification to suppliers?

A requirements brief

The characteristics of the components

The manufacturing processes required

A product sample

NEW QUESTION 79
XYZ Ltd is a large supermarket chain which operates mainly in the UK and Europe. Their custom-ers are increasingly concerned about sustainability. Therefore, procurement manager is required to source the products from suppliers who have good environmental performance. Which of the fol-lowing can be an assurance that the supplier has procedures and policies to enhance its environmental performance?

ISO 14001:2015 certificate

ISO 13485:2016 certificate

ISO 22716:2007 certificate

ISO 9001:2015 certificate

NEW QUESTION 80
Which of the following events would increase the number of suppliers in a particular market?

Introduction of minimum wage regulations

High and increasing levels of investment required to enter the market

Requirement for all companies to have 10,000 or more employees

De-regulation of a previously government-run industry

NEW QUESTION 81
FSB Group is developing a specification for the construction of a new building. The project stakeholders need the specification to set specific criteria to ensure fair labour practices and local employment opportunities are prioritised. Which of the following describes this type of sustainability criteria?

Profit Sustainability

Environmental Sustainability

Social Sustainability

Economic Sustainability

NEW QUESTION 82
An example of a performance specification is a …

Brand name

List of outputs

List of inputs

Technical drawing

NEW QUESTION 83
Why should the buying organisation require the supplier to carry out acceptance testing?

To get the approval from the senior management

To check whether the product matches the specification

To compare between the account payables and account receivables

To see whether the supplier engages in unethical business practice

NEW QUESTION 84
A procurement team is categorising their purchased items into four quadrants of Kraljic’s supply chain portfolio matrix. They realise that there are some low-value items which come from very few suppliers in the market. The organisation is critically dependent on these suppliers. The team plans to reduce the dependence by finding alternative sources. Is this a right course of action?

Yes, the organisation needs to reduce the supply risks

No, the organisation should run competitive biddings to exploit the competition

No, there is no way to escape this dependency

Yes, this action will dramatically increase the supplier’s bargaining power

NEW QUESTION 85
Halfords is a major bicycle and car parts retailer with long history in the market. Its suppliers are plentiful and there is no threat of forward integration. Some other smaller retailers are applying 3D-printing technology to make personalized bicycle parts but their market share is relatively low. 3D-printing technology is an example of which competitive force?

Bargaining power of buyer

Threat of substitute

Rivalry within the industry

New entrants may enter the market

NEW QUESTION 86
Which of the following is a challenge of making a business case for straight re-buys?

Terms and conditions

Research of procurement process

Effective inventory control

Identifying suitable suppliers

NEW QUESTION 87
Which of the following are likely to be disadvantages of using outcome-based specifications? Select THREE that apply

Time consuming to produce

Stifling innovation