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A7 - An Introduction to Purchasing Strategy - Dump Information

Vendor : CIPS
Exam Code : A7
Exam Name : An Introduction to Purchasing Strategy
Questions and Answers : 115 Q & A
Updated On : Click to Check Update
PDF Download Mirror : A7 Brain Dump
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A7 Questions and Answers

Pass4sure A7 Dumps with Real Questions & Practice Test

Answer: Pending. Please Send your suggestions to support@


In a new product development programme, which of the following stages is likely to yield the greatest cost savings as a result of a value engineering exercise?

  1. Detailed design

  2. Prototype production

  3. Conceptual design

  4. Market launch

Answer: Pending. Please Send your suggestions to support@


Supply base rationalisation is best achieved by which of the following means?

  1. Investigating the supply market to recruit more suppliers to lower the supply risk

  2. Evaluating existing suppliers with the aim of reducing the number but improving the quality

  3. Reviewing the supply base and retaining only the lowest cost suppliers

  4. Retaining all existing suppliers but reducing direct contact by supplier tiering.

Answer: Pending. Please Send your suggestions to support@


'Our people are the source of our strength. They provide our corporate intelligence and determine our reputation and vitality.' This extract from the Ford Motor Company is an example of which of the following?

  1. A mission statement

  2. A statement of guiding principles

  3. A vision statement

  4. A value statement

Answer: Pending. Please Send your suggestions to support@


Which of the following best describes the technique ??Pareto analysis???

  1. The law of diminishing marginal returns

  2. The law of the trivial few but important many

  3. The law of unintended consequences

  4. The law of the important few but the trivial many

Answer: Pending. Please Send your suggestions to support@


Explain the following terms in the context of strategy formation:

  1. ??Analysing the environment??.

  2. ??Screening options??.

Answer: Pending. Please Send your suggestions to support@


Briefly describe the contribution made by the following business functions to the

achievement of an organisation??s corporate strategy.

  1. Marketing

  2. Purchasing

  3. Finance

  4. Human resources

  5. Research and development

Answer: Pending. Please Send your suggestions to support@


  1. Construct an impact assessment grid which may be used to analyse risk for an organisation.

  2. Briefly explain the use of the impact assessment grid.

Answer: Pending. Please Send your suggestions to support@


  1. Give TWO definitions of the term ??quality??. (4 marks)

  2. Explain which of your definitions requires the greater involvement from suppliers.

Answer: Pending. Please Send your suggestions to support@


  1. State the equation that is commonly used to define value.

  2. Describe TWO practical examples of how value may be increased, using a product or service with which you are familiar.

Answer: Pending. Please Send your suggestions to support@


Identify FIVE possible benefits of supply base rationalisation.

Answer: Pending. Please Send your suggestions to support@


Dan Dare Aviation (DDA) is a small but highly specialist company which supplies design expertise to aircraft manufacturers worldwide. Until recently, its expertise has been in the design and prototype building of airframes and some important ancillary equipment. As a result of research and development effort, the company has designed a computerised planning and control system that has the potential to greatly reduce the design-to-customer lifecycle of projects. There has been a lot of interest shown in this system and a number of major projects have been started on behalf of the company??s many clients. With a considerable increase in business, a problem has arisen with the purchasing effort that supports the new strategy. In particular the company wants advice from a purchasing professional on how to deal with the following situations.

  1. DDA is spending relatively small sums of money on specially engineered parts that are only available from one supplier because of a patent that applies to the equipment.

  2. For all of the projects a large number of standardised, but high-quality parts, are needed and these are available from a number of different suppliers. Also, large stocks of these parts are to be found in the company??s stores.

  3. As many of DDA??s customers and suppliers are international, large sums of money are spent on freight-forwarding services. If delays occur because of transport problems, projects and deliveries are late, resulting in compensation claims from customers for idle resources.

  4. In a company where there is a large number of design engineers whose work is IT and not paper based, the requirement for stationery items is low ????¨¬?C as is the purchase value of computer consumables. These latter items are, however, time consuming to purchase and are often the subject of stockouts requiring emergency purchases.


  1. Construct a diagram to represent the supplier positioning model.

  2. Using the model, identify the category for each of the purchases numbered (i) to (iv) above.

  3. Explain the purchasing strategy you would recommend for each of the purchases above.

Answer: Pending. Please Send your suggestions to support@


You are employed as a buyer for a company that has adopted a ??cost leadership?? or

??no frills??

strategy in order to gain competitive advantage.

Explain THREE main ways of securing cost efficiency to support the strategy.

Answer: Pending. Please Send your suggestions to support@


A large financial services and insurance company with its head office in the UK is an amalgamation of many smaller companies that it acquired over the years. A recent audit conducted by the company??s internal audit division has revealed that expenditure on stationery related items accounts for over ?5 million per year, and that this figure has been increasing at an alarming rate. Each of the subsidiary companies has its own set of suppliers for these items and the total number of suppliers is in excess of two hundred. TASKS

  1. Explain how you would use Pareto analysis to analyse this expenditure.

  2. Construct a diagram to illustrate the results that you would expect to find.

  3. Describe and briefly assess any TWO options you would suggest for cost reduction for stationery purchases.

Answer: Pending. Please Send your suggestions to support@

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