Supply Chain & Procurement Flashcards
7 cards from real CFS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Supply Chain & Procurement flashcards as text
In fastener procurement, 'source inspection' refers to:
Answer: Quality verification performed at the supplier's facility before shipment
Source inspection is conducted at the supplier's plant prior to shipment, allowing defects to be caught before goods enter the buyer's supply chain.
Which incoterm places the maximum responsibility (cost and risk) on the seller for delivering fasteners to the buyer's named destination?
Answer: DDP (Delivered Duty Paid)
DDP (Delivered Duty Paid) requires the seller to handle all transportation, insurance, customs clearance, and duties until goods are delivered to the named destination.
A procurement team is implementing supplier-managed inventory (SMI) for hex cap screws. Which change in responsibility does the buyer experience?
Answer: The supplier monitors stock levels and replenishes automatically, reducing buyer's inventory management burden
In SMI, the supplier owns and manages replenishment decisions based on agreed min/max levels, freeing the buyer from day-to-day inventory management.
What is the main purpose of a Certificate of Conformance (CoC) in a fastener shipment?
Answer: To document that the fasteners meet specified requirements, serving as a supplier's written declaration of compliance
A CoC is the supplier's formal declaration that the supplied product meets all applicable specifications and requirements, providing traceability documentation.
A fastener procurement team wants to reduce supplier count from 40 to 15. This strategy is known as:
Answer: Supplier rationalization (or consolidation)
Supplier rationalization is the deliberate reduction of the supplier base to improve leverage, reduce administrative costs, and develop deeper relationships with fewer, better suppliers.
When evaluating total landed cost for imported fasteners, which of the following is commonly overlooked but significant?
Answer: Import duties, customs broker fees, port handling, and inland freight
Total landed cost includes all costs to get goods to the point of use: duties, brokerage, freight, port fees, and insurance — which can add 15–30% above the unit price for imported fasteners.
A fastener distributor's 'fill rate' KPI measures:
Answer: The percentage of orders shipped complete from available stock without backorders
Fill rate measures the percentage of customer orders that are fulfilled completely from on-hand inventory without requiring a backorder or partial shipment.