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CIPS L4M6 Exam - Topic 3 Question 42 Discussion

The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?
B) cost analysis
A) supplier positioning
C) relationship spectrum
D) cost engineering

CIPS L4M6 Exam - 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?

Show Suggested Answer Hide 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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Maricela
7 months ago
Definitely A, it helps prioritize suppliers effectively.
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Joaquin
8 months ago
Wait, is this really just for positioning? Sounds off.
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Cristal
8 months ago
I thought it was more about cost analysis?
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Aracelis
8 months ago
Totally agree, A is the right choice.
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Jaclyn
8 months ago
It's mainly for supplier positioning!
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Jerlene
9 months ago
I vaguely recall that it could be used for cost engineering as well, but I'm leaning towards supplier positioning since it categorizes suppliers based on importance.
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Ming
9 months ago
I feel a bit confused about this one. I thought the ABC Analysis was more about managing inventory rather than directly related to supplier relationships.
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Rex
9 months ago
I practiced a similar question before, and I think the ABC Analysis is more about cost analysis. It helps prioritize spending, right?
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Lemuel
9 months ago
I remember studying the ABC Analysis, but I'm not entirely sure how it applies specifically to procurement. I think it might relate to supplier positioning?
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Goldie
9 months ago
Ah, I remember now - the ABC Analysis is used to prioritize and manage inventory. I think the best answer here is B, cost analysis.
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Emmanuel
9 months ago
I remember learning about the Pareto Principle in class, which is the same as the ABC Analysis. I believe the purpose is to help with supplier relationships, so I'll select C.
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Janey
9 months ago
The ABC Analysis is all about categorizing items based on their importance, so I think the right answer is B - cost analysis.
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Phillip
9 months ago
I'm pretty sure the ABC Analysis is used for supplier positioning, so I'll go with option A.
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Katina
9 months ago
Hmm, I'm a bit unsure about this one. I think it might be related to cost analysis, but I'm not totally confident.
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Erick
9 months ago
Hmm, I'm not totally sure about this one. I guess the 'Confirm Compliance' option might work, but I'm not 100% confident that's the right answer.
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Sena
9 months ago
Hmm, I'm a bit unsure about the differences between smart-vlan and mux-vlan. I'll need to review that part carefully.
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Ilene
9 months ago
I remember practicing a similar question where we had to calculate cumulative percentages, but this one looks a bit trickier with the exact values.
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Avery
10 months ago
Hmm, I'm a bit unsure about this one. I know ozone can be harmful to the respiratory system, but I'm not sure which specific reaction it causes. I'll have to think it through step-by-step.
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Nohemi
10 months ago
Hmm, I'm a bit unsure about this one. I know antenna gain and polarization are important, but I'm not sure about the other options. I'll have to think this through carefully.
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Jettie
1 year 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 year 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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Shad
1 year ago
Glenn: Oh, I see. So it's more about efficiency and optimization in purchasing.
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Glenn
1 year 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
1 year ago
User 1: Haha, that's a funny way to think about it!
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Kimberlie
1 year 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
1 year ago
Cost engineering doesn't really fit with the Pareto Principle.
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Lauran
1 year ago
Yeah, the ABC Analysis is definitely more about cost analysis.
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Iluminada
1 year ago
I think B makes sense, it's about analyzing costs.
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Alayna
1 year ago
Relationship spectrum? Really? This is clearly about optimizing procurement costs. The answer has to be B.
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Lai
1 year 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
1 year ago
I believe it can also be used for supplier positioning, not just cost analysis.
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Lavonna
1 year 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 year ago
I prefer using it for cost analysis, helps me identify where I can save money.
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Lauryn
1 year ago
I agree, it's a great tool for supplier positioning.
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Leonora
1 year ago
I agree with Lonna, it helps in analyzing costs effectively.
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Lonna
1 year ago
I think the ABC Analysis is used for cost analysis.
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