L5M5 RELIABLE DUMPS EBOOK, QUESTIONS L5M5 EXAM

L5M5 Reliable Dumps Ebook, Questions L5M5 Exam

L5M5 Reliable Dumps Ebook, Questions L5M5 Exam

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q120-Q125):

NEW QUESTION # 120
McKesson is a leading healthcare company specializing in wholesale medical supplies and equipment, pharmaceutical distribution, and healthcare technology solutions. Recently, public hospitals placed an urgent request for medical supplies. Which of the following is NOT a method for identifying urgent orders?

  • A. Identify strategically important customers and leverage goodwill for commercial renegotiations
  • B. Assess supply chain capability
  • C. Develop a standardized order policy to manage urgent requests, including appropriate cost allocation
  • D. Establish economic order quantities (EOQ) based on profit margins

Answer: D

Explanation:
The correct answer is Option B. A company should establish a minimum order quantity (MOQ) rather than an economic order quantity (EOQ) based on profit margin. MOQ is the minimum order amount set by a supplier or retailer, whereas EOQ determines the optimal order quantity to meet customer demand while minimizing holding and ordering costs.

Reference: LO-1.4; Page 113; Demand Management and the need for urgent orders


NEW QUESTION # 121
Rashed's company is exploring the adoption of the EU's EMAS (Eco-Management and Audit Scheme). What are the key benefits of implementing EMAS?
1. It helps the organization improve its environmental performance and achieve sustainability goals.
2. It guarantees an immediate increase in sales and revenue.
3. It demonstrates compliance with environmental laws and regulations.
4. It offers no costs or resources required for implementation

  • A. 2 and 4 only
  • B. 1 and 2 only
  • C. 3 and 4 only
  • D. 1 and 3 only

Answer: D

Explanation:
Option 1- This is correct. EMAS encourages continuous improvement in environmental performance, which is central to the scheme's purpose.
Option 3- This is correct. One of the key benefits of EMAS is helping organizations demonstrate that they comply with environmental legislation, making it easier to meet legal requirements.
Incorrect answer:
Option 2- This is not correct. While EMAS can enhance reputation, it doesn't guarantee immediate sales or revenue growth.
Option 4- This is incorrect. There are costs involved in setting up and maintaining EMAS, such as for auditing and reporting.
Therefore, the answer is Choice B.
Reference:
LO-3.2; Page 279-280; The benefits and challenges of independent standards in securing ESG objectives in ethical and sustainable procurement and supply arrangements


NEW QUESTION # 122
Progoti Motors, a Bangladeshi company, has purchased a new fleet of vehicles from Japan. Which TWO of the following would be included in the 'Total Landed Costs' of this purchase?

  • A. Recycling costs
  • B. Research and development costs
  • C. Disposal costs
  • D. Transportation costs
  • E. Import duties

Answer: D,E

Explanation:
According to the study guide, total landed cost includes the original product price, transportation costs, fees, customs and duty charges, currency exchange rates, and handling costs. Therefore, Choices B and C are correct. Landed costs typically do not include expenses unrelated to the production and sale of a single item or costs that are difficult to determine precisely. Choices A, D, and E fall into this category.
Reference:
LO-1.4; Page 107; Demand Management and the need for urgent orders


NEW QUESTION # 123
Which of the following standard operating procedures do procurement professionals use to prevent fraud within a company?

  • A. Bypassing formal bidding processes for convenience in purchasing decisions
  • B. Using verbal agreements for procurement contracts to expedite the process
  • C. Allowing a single employee to handle all procurement transactions without oversight
  • D. Implementing a whistleblower hotline to report suspicious activities anonymously

Answer: D

Explanation:
Choice B- A whistleblower hotline allows employees to report suspected fraudulent activities or unethical behavior anonymously, fostering a culture of transparency and accountability. This tool can help organizations identify and address fraud early, reducing the risk of financial loss.
Incorrect answer:
Choice A- Allowing one person to manage all procurement transactions without oversight significantly increases the risk of fraud. Implementing checks and balances, such as requiring multiple approvals or reviews, is essential for accountability and transparency in procurement processes.
Choice C- Relying on verbal agreements increases the risk of misunderstandings and fraud, as there is no formal documentation to refer to. Written contracts are essential for establishing clear terms and protecting both parties, which helps mitigate fraud risks.
Choice D- This option is incorrect. Bypassing formal bidding processes undermines transparency and competitiveness, increasing the risk of fraud and corruption. Adhering to formal procurement processes ensures fairness, accountability, and proper documentation, reducing the likelihood of fraudulent activities.
Reference:
LO-1.1; Page 22-23; The role of governance considerations in securing ethical and sustainable procurement and supply arrangements


NEW QUESTION # 124
Which organisation is responsible for the creation of the 2030 Sustainable Development Agenda?

  • A. ISO
  • B. NATO
  • C. ILO
  • D. UN

Answer: D

Explanation:
This is the UN. There are 17 sustainability goals and these are listed on p.3. For the exam it's a good idea to familiarise yourself with them, but there's no need to learn them all off-by-heart.


NEW QUESTION # 125
......

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