CIPS Exam A7 Topic 1 Question 57 Discussion

Actual exam question for CIPS's A7 exam

Question #: 57
Topic #: 1

Which of the following statements describing the objectives of a purchasing department best represents a strategic approach to the function?

AOptimizations of the total cost of ownership

BPrimary focus: to keep production running

CThe measurement of price reductions

DSome long term contracts.

Show Suggested Answer

Suggested Answer: B

by Sherron at Apr 29, 2024, 03:51 AM

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7 months ago

Yeah, A considers overall impact and long-term benefits. It fits strategic objectives well.

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7 months ago

Option D, long-term contracts, might help strategically, but it’s probably not the primary objective.

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7 months ago

C is important, but doesn't feel long-term. Optimizing costs, like in A, is more comprehensive.

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7 months ago

True, but option C, measuring price reductions, could also be important, no?

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8 months ago

Agreed. Option B seems too operational, just keeping production running.

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8 months ago

I think option A is the best. Optimizing total cost of ownership sounds strategic.

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