CGM Supply Chain & Vendor Management

Question 1

Which supply chain strategy focuses on maintaining minimal inventory levels by receiving goods only as they are needed in the production process?

Accepted Answer

Just-In-Time (JIT)

Answer

Just-In-Time (JIT) is a strategy that aligns raw-material orders with production schedules to reduce inventory holding costs.

Question 2

A vendor scorecard is primarily used by a general manager to:

Accepted Answer

Evaluate and track supplier performance against defined KPIs

Answer

Vendor scorecards measure supplier performance across metrics like quality, delivery, price, and responsiveness to drive continuous improvement.

Question 3

What is the primary purpose of a Request for Proposal (RFP) in vendor selection?

Accepted Answer

To solicit detailed bids and solutions from multiple potential suppliers

Answer

An RFP invites multiple vendors to submit detailed proposals, allowing the organization to compare solutions, pricing, and capabilities before selecting a supplier.

Question 4

Single-sourcing a critical component from one vendor presents the greatest risk of:

Accepted Answer

Supply disruption if the vendor faces production issues

Answer

Relying on a single supplier creates vulnerability; any disruption at that vendor—such as a natural disaster or financial failure—halts your supply chain.

Question 5

Which contract type places the most financial risk on the buyer?

Accepted Answer

Cost-Plus-Fixed-Fee Contract

Answer

In a cost-plus-fixed-fee contract, the buyer reimburses all allowable costs plus a fixed fee, giving the vendor little incentive to control expenses.

CGM - Certified General Manager Practice Test

CGM - Certified General Manager Practice Test

CGM Supply Chain & Vendor Management