CSCP CSCP Sourcing and Supplier Management Questions and Answers 5

Question 1

What is a key risk of a reverse auction when it is used for a strategic, highly customized component?

Accepted Answer

It may harm supplier relationships and overlook total value beyond price

Answer

Reverse auctions focus on price, which can damage collaboration on complex, strategic items.

Question 2

In a make-versus-buy decision, which factor MOST strongly favors making the item in-house?

Accepted Answer

The item is a core competency or protects proprietary technology

Answer

Companies usually keep core competencies and proprietary processes in-house to protect competitive advantage.

Question 3

Which statement BEST describes supplier certification?

Accepted Answer

A supplier's processes have been verified so incoming inspection can be reduced or eliminated

Answer

Certified suppliers have shown consistent quality, which lets buyers skip or reduce receiving inspection.

Question 4

A company uses two suppliers for a critical part, giving each a share of the volume. What is the main benefit?

Accepted Answer

Lower supply disruption risk while keeping competitive pressure

Answer

Dual sourcing hedges against disruption at one supplier and keeps both suppliers competitive.

Question 5

Under the U.S. Dodd-Frank Act, publicly traded companies must disclose their use of which materials from the Democratic Republic of the Congo region?

Accepted Answer

Conflict minerals (tin, tantalum, tungsten, and gold)

Answer

Section 1502 of Dodd-Frank requires disclosure of 3TG conflict minerals sourced from the DRC and neighboring countries.

Certified Supply Chain Professional CSCP Practice Practice Test