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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q18-Q23):

NEW QUESTION # 18
An organisation with amarket-orientated approachto competitive advantage would have which feature?

A. Detailed specifications
B. High expectations of staff
C. Large workforce
D. The customer comes first

Answer: D

Explanation:
Amarket-oriented approachcentres oncustomer needs, designing offerings around satisfaction and experience rather than internal operations.
Short cited extract: "Market-oriented - focus on customer satisfaction and value creation." (L5M7 Study Guide, p.55) Reference:CIPS L5M7 Study Guide, p.55.

NEW QUESTION # 19
Which of the following areadvantages of using local sourcing? Select TWO.

A. Flexibility for support and maintenance
B. Cheaper
C. Higher costs
D. Less environmental impact
E. Higher quality

Answer: A,D

Explanation:
Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.
Short cited extract: "Local sourcing provides reduced environmental impact and proximity for support." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.

NEW QUESTION # 20
Which of the following could be consideredadded valuewithin a supply chain? Select THREE.

A. Innovation
B. Marketing
C. Time to market
D. Profit
E. Quality

Answer: A,C,E

Explanation:
The guide listsquality,innovation, andtime-to-marketamong ways supply chains createadded value(others include price/cost reduction and risk reduction). Short extract: "added value may be created through quality, innovation and time-to-market." (L5M7 Study Guide, p.27) Reference:L5M7 Study Guide, p.27.

NEW QUESTION # 21
Which of the following isnota characteristic ofQuality Managementfound inISO 9001?

A. Continuous Improvement
B. Customer focus
C. Involvement of people
D. Protection of the environment

Answer: D

Explanation:
ISO 9001focuses oneight principlessuch as customer focus, leadership, and improvement.Environmental protectionbelongs underISO 14001, not 9001.
Short cited term: "environment protection covered by ISO 14001, not 9001." (L5M7 Study Guide, p. 122) Reference:CIPS L5M7 Study Guide, p. 122.

NEW QUESTION # 22
Trust is a dynamic concept required in partnership relationships. Which of the following are part of thefive trust componentsimportant in supply chains?

A. Loyalty
B. Integrity
C. Charm
D. Power
E. Competence

Answer: A,B,E

Explanation:
Trust in supply chains is built on components includingintegrity,competence,loyalty,openness, andfairness.
Short extract: "key trust components: integrity, competence, loyalty, openness, fairness." (L5M7 Study Guide, Domain 3.4 section) Reference:L5M7 Study Guide, Domain 3.4 (Relationship/Trust components).

NEW QUESTION # 23
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