CIPS Exam L4M4 Topic 3 Question 16 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 16
Topic #: 3

[All L4M4 Questions]

A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. Which of the following factors is likely to justify the decision to make the requirements internally?

AThe other suppliers are using older technology

BThe availability of in-house competencies and capacity to carry out the production

CExternal suppliers are likely to be overcharging

DExternal sourcing involves cumbersome tendering procedures

Show Suggested Answer

Suggested Answer: A

The three pillars of sustainability are profit, people and planet. This may also be referred to as social, economic and environmental.

by Jesusa at Jul 17, 2024, 07:31 PM

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Man

1 months ago

B is the way to go, no doubt. Although I hear the external suppliers are offering free doughnuts with every order. Tough decision, but I'm still going with the in-house option. Gotta watch that waistline, you know?

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Lino

2 days ago

True, but we have to consider the long-term benefits of utilizing our in-house resources.

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Lauran

13 days ago

But free doughnuts with every order from external suppliers sound tempting.

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Claribel

17 days ago

I agree, having the in-house competencies and capacity is crucial for making the requirements internally.

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Alpha

2 months ago

D? Really? Cumbersome tendering procedures? Sounds like someone's trying to avoid all the paperwork. I'm sticking with B - internal production is the way to go!

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Gilma

9 days ago

True, but dealing with cumbersome tendering procedures can be a hassle. It's a tough decision to make.

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Dominque

13 days ago

But what if the external suppliers are overcharging? That could be a big factor to consider.

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Marcos

29 days ago

I agree, having in-house competencies is definitely an advantage.

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Annice

2 months ago

I'm going with B. Having the right skills and resources in-house is key for making production decisions. Who cares if the other suppliers are using older tech? As long as we can do it better ourselves!

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Cheryl

6 days ago

I agree, external sourcing can involve cumbersome tendering procedures, so it's better to make the requirements internally.

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Margo

13 days ago

I think external suppliers can sometimes overcharge, so it's better to have in-house competencies.

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Martin

29 days ago

Yeah, it's important to have the capacity to carry out production internally.

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Broderick

1 months ago

I agree, having the right skills and resources in-house is crucial for production decisions.

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Rory

2 months ago

I'm torn between B and C. While in-house competencies are important, if the external suppliers are overcharging, that could also justify making the requirements internally.

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Argelia

1 months ago

B) The availability of in-house competencies and capacity to carry out the production

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Magda

2 months ago

A) The other suppliers are using older technology

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Vanda

2 months ago

B seems like the correct answer. If the company has the in-house capabilities and capacity to produce the requirements, that would be a strong reason to make them internally.

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