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CIPS L4M4 Exam - Topic 3 Question 16 Discussion

A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. Which of the following factors is likely to justify the decision to make the requirements internally?
A) The other suppliers are using older technology
B) The availability of in-house competencies and capacity to carry out the production
C) External suppliers are likely to be overcharging
D) External sourcing involves cumbersome tendering procedures

CIPS L4M4 Exam - Topic 3 Question 16 Discussion

Actual exam question for CIPS's L4M4 exam
Question #: 16
Topic #: 3
[All L4M4 Questions]

A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. Which of the following factors is likely to justify the decision to make the requirements internally?

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Suggested Answer: A

The three pillars of sustainability are profit, people and planet. This may also be referred to as social, economic and environmental.


by Jesusa at Jul 17, 2024, 07:31 PM

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Beula
9 months ago
B is definitely the best reason, leveraging in-house talent is key!
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Vi
9 months ago
Wait, are we sure about D? Cumbersome procedures can sometimes be worth it.
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Gerald
10 months ago
C makes sense too, external suppliers can really hike up prices.
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Linn
10 months ago
Totally agree with B, if you have the skills in-house, why not use them?
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Rodrigo
10 months ago
A is a solid point, older tech can really slow things down.
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Fletcher
10 months ago
I feel like option D might be relevant too, but I can't recall if cumbersome procedures alone would justify making something instead of buying it.
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Maurine
11 months ago
I practiced a similar question where cost was a big factor. So, I wonder if option C about overcharging could also play a role in deciding to produce internally.
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Jenise
11 months ago
I'm not entirely sure, but I remember something about how older technology from suppliers could be a red flag. Maybe option A could also be a reason?
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Thaddeus
11 months ago
I think option B makes the most sense since having the right skills and capacity in-house can really justify making things internally.
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Blondell
11 months ago
This is a classic make-or-buy decision. I think the in-house competencies and capacity are the most important factors to consider. The other options don't seem as relevant.
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Vilma
11 months ago
I'm not sure about the other options. The older technology and overcharging by suppliers don't seem as relevant to me. I'll focus on the internal capacity factor.
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Julene
11 months ago
The availability of in-house capabilities is definitely the most important consideration here. External suppliers may not be able to match our internal expertise.
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Nada
11 months ago
Hmm, I'm a bit unsure about this one. I'll need to think through the different factors carefully before deciding.
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Eve
11 months ago
This seems like a straightforward make-or-buy decision. I think the key factor is the availability of in-house competencies and capacity.
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Colette
11 months ago
Alright, I've got a strategy here. Since the question is specifically about ensuring the index is updated, I'm going to focus on the indexing mode options. Consistent mode seems like the logical choice to keep the index in sync with the data changes.
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Moira
11 months ago
Hmm, I'm a bit unsure about this one. Should the roadmap really include all the portfolio components? Option B makes sense, but I'm not totally confident that's the right answer.
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Man
1 year ago
B is the way to go, no doubt. Although I hear the external suppliers are offering free doughnuts with every order. Tough decision, but I'm still going with the in-house option. Gotta watch that waistline, you know?
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Lino
1 year ago
True, but we have to consider the long-term benefits of utilizing our in-house resources.
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Lauran
1 year ago
But free doughnuts with every order from external suppliers sound tempting.
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Claribel
1 year ago
I agree, having the in-house competencies and capacity is crucial for making the requirements internally.
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Alpha
1 year ago
D? Really? Cumbersome tendering procedures? Sounds like someone's trying to avoid all the paperwork. I'm sticking with B - internal production is the way to go!
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Gilma
1 year ago
True, but dealing with cumbersome tendering procedures can be a hassle. It's a tough decision to make.
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Dominque
1 year ago
But what if the external suppliers are overcharging? That could be a big factor to consider.
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Marcos
1 year ago
I agree, having in-house competencies is definitely an advantage.
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Annice
1 year ago
I'm going with B. Having the right skills and resources in-house is key for making production decisions. Who cares if the other suppliers are using older tech? As long as we can do it better ourselves!
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Cheryl
1 year ago
I agree, external sourcing can involve cumbersome tendering procedures, so it's better to make the requirements internally.
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Margo
1 year ago
I think external suppliers can sometimes overcharge, so it's better to have in-house competencies.
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Martin
1 year ago
Yeah, it's important to have the capacity to carry out production internally.
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Broderick
1 year ago
I agree, having the right skills and resources in-house is crucial for production decisions.
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Rory
1 year ago
I'm torn between B and C. While in-house competencies are important, if the external suppliers are overcharging, that could also justify making the requirements internally.
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Argelia
1 year ago
B) The availability of in-house competencies and capacity to carry out the production
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Magda
1 year ago
A) The other suppliers are using older technology
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Vanda
1 year ago
B seems like the correct answer. If the company has the in-house capabilities and capacity to produce the requirements, that would be a strong reason to make them internally.
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Corrina
1 year ago
User 4: Agreed, it's important to consider all factors before making a decision
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Leota
1 year ago
User 3: Definitely, it would save time and possibly costs too
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Rima
1 year ago
User 2: That makes sense, it would be more efficient to make them internally if we have the skills and resources
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Lourdes
1 year ago
User 1: B) The availability of in-house competencies and capacity to carry out the production
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Kaycee
1 year ago
But what if external suppliers are overcharging? That could be a factor to consider too.
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Ahmad
1 year ago
I agree with Carolynn. It's more cost-effective to make requirements internally.
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Carolynn
1 year ago
I think the availability of in-house competencies and capacity is important.
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