Certified Supply Chain Professional CSCP Practice CSCP Sourcing and Supplier Management 1

Question 1

Which contract type places the greatest financial risk on the buyer by reimbursing the supplier for all allowable costs plus a fixed fee?

Accepted Answer

Cost-plus-fixed-fee contract

Answer

Fixed-price contract

Answer

Time-and-materials contract

Answer

Incentive-fee contract

Question 2

A company decides to bring a previously outsourced manufacturing process back in-house. This decision is best described as:

Accepted Answer

Insourcing

Answer

Nearshoring

Answer

Dual sourcing

Answer

Vertical integration

Question 3

In supplier relationship management, what is the primary distinction between a transactional relationship and a strategic partnership?

Accepted Answer

Transactional relationships focus on short-term, price-driven interactions while strategic partnerships involve long-term collaboration and shared goals

Answer

Strategic partnerships always involve lower unit prices

Answer

Transactional relationships require more contractual documentation

Answer

Strategic partnerships are used exclusively for commodity purchases

Question 4

When evaluating a potential new supplier, which approach involves visiting the supplier's facility to assess quality systems, capacity, and operational capability firsthand?

Accepted Answer

On-site supplier assessment

Answer

Desk audit

Answer

Supplier qualification survey

Answer

Request for information (RFI)

Question 5

A procurement team uses a weighted scoring model to select among competing suppliers. What is the main advantage of this approach over choosing based solely on price?

Accepted Answer

It allows multiple criteria such as quality, delivery, and financial stability to be objectively compared and balanced

Answer

It eliminates the need for contract negotiation

Answer

It guarantees the lowest total cost

Answer

It reduces the number of suppliers in the approved vendor list

Question 6

Which sourcing practice involves collaborating with a supplier during product design to improve manufacturability, reduce costs, and shorten development cycles?

Accepted Answer

Early supplier involvement (ESI)

Answer

Supplier-managed inventory (SMI)

Answer

Reverse auctioning

Answer

Blanket purchase order