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CIPS L4M7 Exam - Topic 4 Question 11 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 11
Topic #: 4
[All L4M7 Questions]

A procurement manager has been asked to justify the purchase of a large piece of capital equipment valued at 500,000 to internal stakeholders. The procurement manager decided to prepare the justification using a comprehensive formal business case due to the value of the purchase. Were they correct in doing this?

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Suggested Answer: D

Warehouse dock is a feature of warehouse design - used for unloading and loading vehicles. It is crucial to carefully design where they are externally located in a facility and choose the best type of dock depending on the available space.

In many cases efficient and effective loading and unloading is achieved by a dock design that places the loading and unloading vehicle' rear platform at the same height as the warehouse floor.

Slopes in docking areas must always be as small as possible: the gentler the slope, the less chance of errors and accidents. If a warehouse is going to be used by large volume vehicles, such as high cubes, it may be necessary to install special devices, such as hydraulically adjustable docks or ground level lift platforms.

Current trends indicate that vehicles that are longer and wider and have a greater volume will be increasingly common. Therefore, when planning the location of the docks, it would be useful to ensure that there is a large area for the approach, manoeuvring and build-up of large vehicles.

One option to increase the efficiency of the docks is to combine reception and dispatch into a single area (dual use). This solution drastically reduces costs and, above all, increases the use of handling equipment and personnel. However, if this is justified by the volume of material flows, there can also be separate access points for each function (some for reception and others for dispatch - 'sole use').


- Warehouse docking areas - Interlake

- CIPS study guide page 13

LO 1, AC 1.1

by Natalie at Jan 07, 2023, 07:26 PM

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Kaycee
4 months ago
I think they’re right, big purchases need solid backing!
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Orville
4 months ago
A comprehensive justification is always a good idea, no matter the cost.
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Sabina
4 months ago
Surprised they wouldn't just go for it without a formal case!
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Tamesha
4 months ago
I disagree, management can decide without all that paperwork.
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Millie
4 months ago
Definitely should prepare a business case for that amount!
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Nan
5 months ago
I could see how some might think senior management could decide without much justification, but I lean towards needing a formal process for such a big purchase.
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Terry
5 months ago
This reminds me of a practice question where we had to justify capital investments. I think a comprehensive business case is always a good idea, regardless of the amount.
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Aimee
5 months ago
I'm not entirely sure, but I feel like senior management would still need some justification, even if they have experience.
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Sue
5 months ago
I remember discussing the importance of a formal business case for high-value purchases in class, so I think the procurement manager was correct.
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Madelyn
5 months ago
I think I know the difference between capital and operating expenses, but I want to double-check my understanding before answering.
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Kayleigh
5 months ago
I'm confident I can solve this one. The requirement is clear, and option B seems like the most appropriate solution. I'll double-check my answer before submitting.
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Alayna
5 months ago
Resource replication sounds right, probably crucial for cloud bursting, but I might second guess automated scaling as well.
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Shannon
5 months ago
I've got a good feeling about this one. I'm pretty confident that HTML is the correct answer, but I'll still review the other options just in case.
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Denny
5 months ago
I've got a good handle on multicast concepts, so I think I can narrow this down. Option A sounds like the right answer, as it's specifically about configuring the PE routers to receive multicast traffic for a particular MVRF.
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Donette
5 months ago
Okay, let's think this through. I'd say the next logical step is to verify the resources being used on the project to make sure they're adequate.
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Anglea
9 months ago
A 500,000 piece of equipment? Sheesh, I can barely justify the expense of a new stapler to my boss. This procurement manager must have some serious negotiating skills!
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Remona
8 months ago
C) Yes, as the procurement manager should undertake a comprehensive formal business case justification whatever the value of the purchase is likely to be
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Ryann
8 months ago
B) No, as the senior management would be able to make a decision on the proposed investment with little or no financial justification as they would be better placed to judge the requirement
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Annelle
9 months ago
A) Yes, as the value of the proposed purchase is substantial and would require a significant capital investment by the organisation and approval of the senior management team
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Hobert
10 months ago
Wait, the procurement manager can't just buy a 500,000 piece of equipment on their own? That's news to me! Guess I better brush up on my procurement policies.
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Cordelia
10 months ago
Of course the procurement manager should do a business case. It's always better to have too much justification than not enough, especially for a big-ticket item.
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Louis
8 months ago
C) Yes, as the procurement manager should undertake a comprehensive formal business case justification whatever the value of the purchase is likely to be
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Yuette
9 months ago
I agree, it's important to have a solid business case for such a significant investment.
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Arlette
9 months ago
A) Yes, as the value of the proposed purchase is substantial and would require a significant capital investment by the organisation and approval of the senior management team
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Lon
10 months ago
I disagree. The senior management team should be able to make this decision without a formal business case. They're the experts, after all.
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Terrilyn
8 months ago
C) Yes, as the procurement manager should undertake a comprehensive formal business case justification whatever the value of the purchase is likely to be
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Skye
8 months ago
But shouldn't the senior management have all the information they need to make an informed decision?
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Vallie
8 months ago
B) No, as the senior management would be able to make a decision on the proposed investment with little or no financial justification as they would be better placed to judge the requirement
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Farrah
8 months ago
I think the procurement manager made the right call in preparing a formal business case.
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Geoffrey
9 months ago
A) Yes, as the value of the proposed purchase is substantial and would require a significant capital investment by the organisation and approval of the senior management team
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Nettie
9 months ago
B) No, as the senior management would be able to make a decision on the proposed investment with little or no financial justification as they would be better placed to judge the requirement
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Carol
9 months ago
I disagree. The senior management team should be able to make this decision without a formal business case. They're the experts, after all.
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Andrew
10 months ago
A) Yes, as the value of the proposed purchase is substantial and would require a significant capital investment by the organisation and approval of the senior management team
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Elise
10 months ago
I disagree. The senior management team should be able to make this decision without a formal business case. They're the experts, after all.
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Brynn
10 months ago
A) Yes, as the value of the proposed purchase is substantial and would require a significant capital investment by the organisation and approval of the senior management team
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Fabiola
10 months ago
The procurement manager was definitely right to prepare a comprehensive business case for a purchase of this magnitude. With a 500,000 investment, the senior management team needs to be fully informed and on board.
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Yasuko
11 months ago
B) No, as the senior management would be able to make a decision on the proposed investment with little or no financial justification as they would be better placed to judge the requirement.
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Jerry
11 months ago
C) Yes, as the procurement manager should undertake a comprehensive formal business case justification whatever the value of the purchase is likely to be.
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Gilberto
11 months ago
A) Yes, as the value of the proposed purchase is substantial and would require a significant capital investment by the organisation and approval of the senior management team.
upvoted 0 times
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