D2 CIPS March 2019 PDF
D2 CIPS March 2019 PDF
D2 CIPS March 2019 PDF
QUESTION PAPER
INSTRUCTIONS FOR CANDIDATES
This examination has FOUR compulsory questions worth 25 marks each.
1. Do not open this question paper until instructed by the invigilator.
2. All answers must be written in the answer booklet provided.
3. All rough work and notes should be written in the answer booklet.
QP04
QUESTIONS
(b) Describe FIVE costs that should be considered when calculating the life cycle cost of an item,
apart from the purchase price of the item. (20 marks)
(b) Explain ONE possible advantage and ONE possible disadvantage of involving suppliers in
producing a specification. (10 marks)
Q3 (a) Explain the following types of pricing arrangement and their use:
(iii)
Cost plus award fee. (5 marks)
(b) Explain what is meant by an indemnity clause and provide an example of how such a clause
may be used. (10 marks)
Q4 (a) Alternative sourcing options must first be evaluated before making a business case to
outsource processes or services. The considerations of these alternative sourcing options may
be included as part of the business case.
Describe THREE such alternative sourcing options that could be evaluated when making an
outsourcing decision. (15 marks)
(b) Discuss TWO options for a purchaser if a contract for outsourced services breaks down.
(10 marks)