Practice Test Geeks(APP) Accredited Purchasing Practitioner Certification Practice Test
← All APP Flashcard Decks

Negotiation & Supplier Management Flashcards

7 cards from real APP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Negotiation & Supplier Management flashcards as text

  1. A supplier consistently delivers on time but has rising quality defect rates. What is the FIRST step a procurement team should take?

    Answer: Issue a formal corrective action request (CAR)

    A corrective action request formally documents the problem and requires the supplier to identify root cause and implement fixes.

  2. The 'Zone of Possible Agreement' (ZOPA) in negotiation refers to:

    Answer: The range between each party's reservation price where a deal can occur

    ZOPA is the overlap between the buyer's maximum willingness to pay and the seller's minimum acceptable price.

  3. Which document formally defines the expectations, metrics, and remedies governing a supplier's ongoing performance?

    Answer: Service Level Agreement (SLA)

    An SLA specifies measurable performance standards and outlines consequences or remedies for non-compliance.

  4. A buyer uses the 'nibble' tactic at the end of a negotiation. What does this involve?

    Answer: Requesting a small additional concession after the main deal is agreed

    The nibble involves asking for one last small add-on (free shipping, extended warranty) after both parties believe terms are settled.

  5. Early Supplier Involvement (ESI) in new product development primarily benefits purchasing by:

    Answer: Allowing suppliers to provide design input that reduces cost and improves manufacturability

    ESI brings supplier expertise into the design phase, where changes are cheapest and can prevent costly redesigns later.

  6. In a cost-plus contract, the supplier's profit is determined by:

    Answer: A percentage or fixed amount added to the supplier's verified actual costs

    Cost-plus contracts reimburse the supplier's allowable costs and add a predetermined profit margin or fee.

  7. Which supplier segmentation model categorizes suppliers by the financial impact of supply failure and the difficulty of switching suppliers?

    Answer: Kraljic Matrix

    The Kraljic Matrix segments suppliers on two axes — profit impact and supply risk — to guide differentiated management strategies.