Contexts of Procurement and Supply

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D1/July 2018

Diploma in procurement and supply

Contexts of procurement and supply

Date Wednesday 18 July 2018


Time Start 09:30 End 12:30 Duration 3 hours

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

You are advised to spend 45 minutes on each question.

Q1 Explain FIVE differences between operational expenditure and capital expenditure. (25 marks)

Q2 (a) Outline the potential impact of complex compliance requirements on the achievement of
positive outcomes in the sourcing process. (10 marks)

(b) Describe FIVE ways in which contract management might add value after the contract award
stage of the sourcing process. (15 marks)

Q3 (a) A procurement consortium is a group of separate organisations that combine together for the
purpose of procuring goods and services.

Describe THREE disadvantages, for an organisation, of operating within a


procurement consortium. (15 marks)

(b) Describe TWO advantages for an organisation in having an outsourced procurement function.
(10 marks)

Q4 Compare FIVE characteristics of manufacturing sector organisations with those of retail


sector organisations. (25 marks)

END OF QUESTION PAPER

Page 3 of 8 D1 Exam Questions July 2018


PLEASE RETURN TO:
CIPS ASSESSMENT MANAGEMENT CENTRE
c/o LINNEY ACTIVATE, A2 GOODS IN
BELLAMY ROAD, MANSFIELD
NOTTINGHAMSHIRE NG18 4LN
UNITED KINGDOM
TEL: +44(0) 845 880 1188
FAX: +44(0) 845 880 1187
www.cips.org

Page 8 of 8 D1 Exam Questions July 2018

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