CIPS Exam L4M2 Topic 10 Question 44 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 44
Topic #: 10

[All L4M2 Questions]

GSC Ltd is a manufacturer of car parts. To accommodate growing demands of electric cars, the company is developing a new component which requires different type of steel. The project team estimates that the component will be ready for production in 1.5 years. Until then, they need to keep the production busy.

After checking the inventory records, the production team sees that the company has 3 months of stock. The lead time for each batch is two months. Which of the following should be a priority ac-tion of the company?

ACreate new specification to new supplier

BStandardise the specification

CCreate new specification to current supplier

DMake a call-off order to current supplier

Show Suggested Answer

Suggested Answer: C

Writing a specification and then procuring and using the product or service has a number of stages. The further on in the process you are, the less potential there is for cost reductions. Therefore, opportunities for cost reduction will be greatest in the two first stages: planning stage and pre-design stage.

LO 3, AC 3.1

by Brinda at Sep 14, 2024, 11:44 AM

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