APP Supplier Evaluation & Performance Management 2

Question 1

The weighted scorecard method evaluates suppliers by:

Accepted Answer

Assigning importance weights to performance criteria and calculating a composite score

Answer

The weighted scorecard assigns relative importance percentages to criteria such as quality, delivery, service, and cost, then calculates a weighted composite score for objective comparison.

Question 2

What is the primary goal of a supplier development program?

Accepted Answer

To improve a supplier's capabilities to better meet the buyer's current and future needs

Answer

Supplier development programs work collaboratively with suppliers to strengthen their processes, quality systems, and capabilities, improving performance without the disruption of switching suppliers.

Question 3

A Service Level Agreement (SLA) in a supplier contract typically specifies:

Accepted Answer

Specific measurable performance standards and consequences for non-compliance

Answer

An SLA defines specific, measurable performance standards such as uptime, response times, and delivery rates, along with remedies or penalties if those standards are not met.

Question 4

Supplier segmentation (such as the Kraljic Matrix) helps procurement professionals by:

Accepted Answer

Categorizing suppliers by spend and risk to apply differentiated management strategies

Answer

Supplier segmentation classifies suppliers based on spend volume and supply risk, allowing procurement to invest resources strategically—partnering closely with critical suppliers and streamlining management of routine ones.

Question 5

Which financial metric is most commonly used to assess a supplier's ability to meet short-term obligations?

Accepted Answer

Current ratio

Answer

The current ratio (current assets divided by current liabilities) measures a supplier's short-term liquidity and ability to meet near-term financial obligations without disrupting supply.

(APP) Accredited Purchasing Practitioner Certification Practice Test

(APP) Accredited Purchasing Practitioner Certification Practice Test

APP Supplier Evaluation & Performance Management 2