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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions:

1. GlobalTechManufacturing (GTM), a multinational company, operates a complex supply chain spanning multiple countries and stakeholders. Recognizing this complexity as a major risk, the Chief Supply Chain Officer (CSCO) has launched a supply chain mapping project. The objective is to analyze GTM's supply chain structure and develop risk mitigation strategies. The initial phase of this project will primarily focus on understanding which of the following aspects within GTM's supply chains?
1. Branding
2. Tiers
3. Complexity
4. Innovation

A) 1 and 4 only
B) 2 and 3 only
C) 1 and 2 only
D) 3 and 4 only

2. An organization has a clear understanding of the service it requires and has precisely outlined the process for how the supplier must deliver it. It aims to use an 'outcome-focused specification.' Is this the appropriate specification approach for the organization?

A) No, an open specification would be the better approach
B) Yes, this specification approach allows for maximum innovation from the supplier
C) Yes, this specification approach explicitly defines how the service should be delivered
D) No, in an outcome-focused specification approach, the supplier determines how to deliver the service

3. The Rampal Power Station, a 1320 MW coal-fired power plant, has recently faced accusations of poor health and safety standards in the workplace. Workers have reported being forced to work without safety masks, exposing them to air pollution. If Rampal Power Station fails to improve its health and safety standards, which of the following is the most likely primary consequence?

A) Destruction of the environment
B) Complexity in calculating insurance coverage
C) Acquisition of poor quality materials from suppliers
D) Loss of reputation

4. Progoti Motors, a Bangladeshi company, has purchased a new fleet of vehicles from Japan. Which TWO of the following would be included in the 'Total Landed Costs' of this purchase?

A) Research and development costs
B) Import duties
C) Recycling costs
D) Disposal costs
E) Transportation costs

5. Which of the following form the 'Triple Bottom Line'? Select THREE

A) people
B) profit
C) placement
D) planet
E) product

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