CIPS Exam L5M2 Topic 3 Question 53 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 53
Topic #: 3

[All L5M2 Questions]

Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?

Avalue at risk

Bnormal distribution

Cbinomial distribution

DPoisson Distribution

Show Suggested Answer

Suggested Answer: A

The correct answer is 1 - the 3rd party can provide broader experience and expertise. They can advise on best practice and will know how to advise Robot Ltd as they will have experience across a wide range of companies. This is explained on p.91 of the study guide

by Deane at Mar 04, 2025, 07:06 PM

Limited Time Offer

25%

Off

Get Premium L5M2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Therese

1 months ago

I heard Oliver's supplier is so unreliable, they're sponsored by the Bermuda Triangle.

upvoted 0 times

Alishia

11 days ago

Oliver should use binomial distribution to calculate the likelihood.

upvoted 0 times

...

Dorsey

1 months ago

Wow, value at risk? That's for stock market analysis, not procurement. I think Oliver needs to stick to the basics here - the binomial distribution is the way to go.

upvoted 0 times

...

Izetta

2 months ago

Oh, come on! Normal distribution? That's for, like, bell curves and stuff. This is all about supplier reliability. Clearly, the binomial distribution is the way to go.

upvoted 0 times

Wendell

1 months ago

User 1: I think normal distribution is not the right choice here.

upvoted 0 times

...

Lemuel

2 months ago

I think Poisson Distribution could also work, as it deals with the number of events happening in a fixed interval of time.

upvoted 0 times

...

Nida

2 months ago

I agree with Sharee, binomial distribution is the most appropriate for this scenario.

upvoted 0 times

...

Casie

2 months ago

Hmm, I'm not so sure. Binomial distribution seems a bit too simplistic. Maybe the Poisson distribution would be a better fit, since it's often used for rare events like supplier failures.

upvoted 0 times

Frankie

1 months ago

I think binomial distribution might not capture the variability of supplier failures accurately.

upvoted 0 times

...

Vesta

1 months ago

I agree, Poisson distribution would be more appropriate for rare events.

upvoted 0 times

...

Sharee

2 months ago

Oliver should use binomial distribution.

upvoted 0 times

...

Huey

2 months ago

I think Oliver should use the binomial distribution method. It's perfect for analyzing the probability of a supplier failing to deliver on two consecutive days.

upvoted 0 times

Vesta

1 months ago

Oliver should definitely avoid using the value at risk methodology for this particular analysis.

upvoted 0 times

...

Sarina

1 months ago

I'm not sure, but I think the normal distribution method might also be worth exploring.

upvoted 0 times

...

Christene

2 months ago

I think Oliver should also consider the Poisson Distribution method, it could provide valuable insights.

upvoted 0 times

...

Jeanice

2 months ago

I agree, the binomial distribution method is the most appropriate for this scenario.

upvoted 0 times

...