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CIPS L4M6 Practice Test Questions Answers

Exam Code: L4M6 (Updated 243 Q&As with Explanation)
Exam Name: Supplier Relationships
Last Update: 14-Oct-2025
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Questions Include:

  • Single Choice: 194 Q&A's
  • Multiple Choice: 49 Q&A's

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    L4M6 Questions and Answers

    Question # 1

    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?

    A.

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

    B.

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

    C.

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

    D.

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

    Question # 2

    How would a buyer measure value for money from a relationship with a new supplier for goods?

    A.

    Audit of how suppliers promise

    B.

    Lowest possible cost

    C.

    Balance of quality and cost

    D.

    Quality and volume of goods

    Question # 3

    Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

    A.

    cost leadership

    B.

    differentiation

    C.

    cost focus

    D.

    differentiation focus

    Question # 4

    Which of the following characteristics are typical of a partnership approach relationship between a buyer and supplier?

      Win:Lose (distributive) style negotiations

      Joint key performance indicator (KPI) measurement

      Definitive contract end period

      Transparent information sharing

    A.

    1 and 2 only

    B.

    2 and 3 only

    C.

    1 and 4 only

    D.

    2 and 4 only

    Question # 5

    Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?

    A.

    Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise

    B.

    Yes- mediation means the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues

    C.

    No- it would be better to solve the disagreement in-house

    D.

    No- mediation could have a negative impact on the companies’ reputation

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