Discuss CIPS L4M6 Exam Topic 3 Question 76

In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?

AFalse, the product is in a supply market which is highly complex and the product is of low importance

BFalse, the product is in a supply market which is highly complex and the product is of high importance

CTrue, the product is in a supply market which is of low complexity and the product is of high importance

DTrue, the product is in a supply market which is of low complexity and the product is of low importance

Suggested Answer: C

Comprehensive and Detailed

Leverage products are characterized by:

High profit impact:They significantly affect the company's bottom line.

Low supply risk:They are available from multiple suppliers, making it easy to switch if necessary.

These products often have standardized quality, and the competitive supply market allows buyers to negotiate favorable terms.

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20 comments · newest first

Nina 2 months ago

I’m with C. Low complexity, high importance fits leverage.

Alfred 2 months ago

I vote for B. High importance complicates things.

Carisa 2 months ago

But isn't high importance crucial for leverage?

Delpha 3 months ago

I feel it's TRUE. Low complexity means easier choices.

Wade 3 months ago

Agreed, I lean towards option A. Complexity is key.

Fernanda 3 months ago

I think it's FALSE. Leverage products are easier to switch.

Melvin 3 months ago

Yeah, I thought leverage was about low importance too!

Lettie 3 months ago

I think it's false, high importance means it's not leverage.

Alton 4 months ago

Wait, are we sure about that? Sounds off to me.

Natalie 4 months ago

Totally agree, low complexity and standardized quality!

Coral 4 months ago

It's true, leverage products are easy to switch.

Dorcas 4 months ago

True, low complexity and low importance for leverage products!

Rosio 4 months ago

I think it’s more complex than that, honestly.

Alonso 4 months ago

Wait, is it really that simple? Sounds off.

Vallie 6 months ago

Totally agree, it's all about standardization!

Adell 6 months ago

Leverage products are indeed easy to switch suppliers.

Ma 7 months ago

I thought leverage products were low importance, but I can't recall if that means they are also low complexity. This is tricky!

Mickie 7 months ago

This question feels familiar; I practiced one that mentioned high importance in a complex market, so I think the answer is FALSE.

Antonio 7 months ago

I remember something about switching suppliers being easy for leverage products, so I might lean towards TRUE, but I could be wrong.

Edna 7 months ago

I think leverage products are actually in low complexity markets, but I'm not sure about the importance aspect.

CIPS L4M6 Exam - Topic 3 Question 76 Discussion