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CIPS Exam L4M6 Topic 3 Question 42 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 42
Topic #: 3

[All L4M6 Questions]

The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?

Asupplier positioning

Bcost analysis

Crelationship spectrum

Dcost engineering

Show Suggested Answer

Suggested Answer: B

The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.

by Raymon at Jun 22, 2024, 10:39 PM

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Jettie

1 months ago

Wait, there's an 'engineering' version of the ABC Analysis? I guess that's for the procurement professionals who really love their spreadsheets.

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Franchesca

1 months ago

I heard the ABC Analysis is also great for determining how much chocolate is 'vital' to my daily intake. Gotta love those Pareto snacks!

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Glenn

6 days ago

User 2: The ABC Analysis is actually used to categorize items based on their importance and prioritize procurement efforts.

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Quentin

15 days ago

User 1: Haha, that's a funny way to think about it!

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Kimberlie

2 months ago

Cost engineering? What is this, a trick question? Everyone knows the ABC Analysis is all about the Pareto Principle. B is the way to go.

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Staci

7 days ago

Cost engineering doesn't really fit with the Pareto Principle.

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Lauran

21 days ago

Yeah, the ABC Analysis is definitely more about cost analysis.

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Iluminada

1 months ago

I think B makes sense, it's about analyzing costs.

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Alayna

2 months ago

Relationship spectrum? Really? This is clearly about optimizing procurement costs. The answer has to be B.

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Lai

2 months ago

Cost analysis, of course! The whole point is to identify the vital few items that account for the majority of expenditures.

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Corrina

2 months ago

I believe it can also be used for supplier positioning, not just cost analysis.

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Lavonna

2 months ago

The ABC Analysis is definitely for supplier positioning. I've used it to categorize my vendors and focus on the critical few.

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Fredric

1 months ago

I prefer using it for cost analysis, helps me identify where I can save money.

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Lauryn

1 months ago

I agree, it's a great tool for supplier positioning.

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Leonora

2 months ago

I agree with Lonna, it helps in analyzing costs effectively.

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Lonna

2 months ago

I think the ABC Analysis is used for cost analysis.

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