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?

AThe other suppliers are using older technology

BThe availability of in-house competencies and capacity to carry out the production

CExternal suppliers are likely to be overcharging

DExternal sourcing involves cumbersome tendering procedures

Show Suggested Answer

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

Limited Time Offer

25%

Off

Get Premium L4M4 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Beula

3 months ago

B is definitely the best reason, leveraging in-house talent is key!

upvoted 0 times

...

Vi

3 months ago

Wait, are we sure about D? Cumbersome procedures can sometimes be worth it.

upvoted 0 times

...

Gerald

3 months ago

C makes sense too, external suppliers can really hike up prices.

upvoted 0 times

...

Linn

4 months ago

Totally agree with B, if you have the skills in-house, why not use them?

upvoted 0 times

...

Rodrigo

4 months ago

A is a solid point, older tech can really slow things down.

upvoted 0 times

...

Fletcher

4 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.

upvoted 0 times

...

Maurine

4 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.

upvoted 0 times

...

Jenise

4 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?

upvoted 0 times

...

Thaddeus

5 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.

upvoted 0 times

...

Blondell

5 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.

upvoted 0 times

...

Vilma

5 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.

upvoted 0 times

...

Julene

5 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.

upvoted 0 times

...

Nada

5 months ago

Hmm, I'm a bit unsure about this one. I'll need to think through the different factors carefully before deciding.

upvoted 0 times

...

Eve

5 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.

upvoted 0 times

...

Colette

5 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.

upvoted 0 times

...

Moira

5 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.

upvoted 0 times

...

Man

10 months 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?

upvoted 0 times

Lino

8 months ago

True, but we have to consider the long-term benefits of utilizing our in-house resources.

upvoted 0 times

...

Lauran

9 months ago

But free doughnuts with every order from external suppliers sound tempting.

upvoted 0 times

...

Claribel

9 months ago

I agree, having the in-house competencies and capacity is crucial for making the requirements internally.

upvoted 0 times

...

Alpha

10 months 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!

upvoted 0 times

Gilma

9 months ago

True, but dealing with cumbersome tendering procedures can be a hassle. It's a tough decision to make.

upvoted 0 times

...

Dominque

9 months ago

But what if the external suppliers are overcharging? That could be a big factor to consider.

upvoted 0 times

...

Marcos

9 months ago

I agree, having in-house competencies is definitely an advantage.

upvoted 0 times

...

Annice

10 months 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!

upvoted 0 times

Cheryl

8 months ago

I agree, external sourcing can involve cumbersome tendering procedures, so it's better to make the requirements internally.

upvoted 0 times

...

Margo

9 months ago

I think external suppliers can sometimes overcharge, so it's better to have in-house competencies.

upvoted 0 times

...

Martin

9 months ago

Yeah, it's important to have the capacity to carry out production internally.

upvoted 0 times

...

Broderick

9 months ago

I agree, having the right skills and resources in-house is crucial for production decisions.

upvoted 0 times

...

Rory

11 months 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.

upvoted 0 times

Argelia

10 months ago

B) The availability of in-house competencies and capacity to carry out the production

upvoted 0 times

...

Magda

10 months ago

A) The other suppliers are using older technology

upvoted 0 times

...

Vanda

11 months 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.

upvoted 0 times