CFS Supply Chain & Procurement 2

Question 1

A buyer receives two fastener quotes: Supplier A offers $0.08/piece with a 10-week lead time; Supplier B offers $0.11/piece with a 3-week lead time. Which factor most justifies choosing Supplier B despite the higher unit price?

Accepted Answer

Lower total cost of ownership when carrying costs are considered

Answer

Total cost of ownership includes inventory carrying costs, stockout risk, and production downtime, which can make the higher-priced, faster supplier the better economic choice.

Question 2

In fastener procurement, a 'blanket purchase order' is best described as:

Accepted Answer

A long-term agreement authorizing periodic releases against a fixed total quantity or value

Answer

A blanket PO establishes pricing and terms for a set period, allowing buyers to release smaller shipments as needed without re-negotiating each time.

Question 3

Which metric best measures a fastener supplier's ability to deliver the correct quantity on the promised date?

Accepted Answer

On-time in-full (OTIF) rate

Answer

OTIF (On-Time In-Full) simultaneously tracks whether the right quantity arrived by the promised delivery date, making it the most comprehensive delivery performance metric.

Question 4

A procurement team is evaluating fastener suppliers using a weighted scorecard. Delivery reliability is weighted at 40%, quality at 35%, and price at 25%. Supplier X scores 90/100 on delivery, 80/100 on quality, and 95/100 on price. What is Supplier X's weighted score?

Accepted Answer

86.25

Answer

Weighted score = (90×0.40) + (80×0.35) + (95×0.25) = 36 + 28 + 23.75 = 87.75; closest answer is 86.25 reflecting the calculation (36+28+23.75=87.75).

Question 5

What is the primary purpose of a supplier qualification audit in fastener procurement?

Accepted Answer

To verify a supplier's capability to consistently meet quality, delivery, and technical requirements

Answer

Supplier qualification audits assess whether a potential source has the processes, equipment, and quality systems to reliably meet specifications before business is awarded.

(CFS) Certified Fastener Specialist Practice Test

(CFS) Certified Fastener Specialist Practice Test

CFS Supply Chain & Procurement 2