CPL Strategic Sourcing & Procurement 2

Question 1

Which sourcing strategy is most appropriate when a commodity has low supply risk and low profit impact?

Accepted Answer

Routine/acquisition focus

Answer

The Kraljic Matrix places low-risk, low-impact items in the 'routine' quadrant, where the goal is to streamline and automate purchasing to reduce transaction costs.

Question 2

A total cost of ownership (TCO) analysis differs from a unit price comparison primarily because it:

Accepted Answer

Includes all costs over the product lifecycle

Answer

TCO captures acquisition, operating, maintenance, and disposal costs, giving a complete picture beyond the purchase price alone.

Question 3

A 'preferred supplier' designation typically means the supplier:

Accepted Answer

Has been pre-qualified and receives first consideration for new business

Answer

Preferred supplier status reflects pre-qualification based on proven performance, giving that supplier priority consideration before others are solicited.

Question 4

In a reverse auction, prices typically move in which direction during the bidding event?

Accepted Answer

Downward as suppliers undercut each other

Answer

In a reverse auction, multiple suppliers bid against each other in real time, driving prices downward to win the buyer's business.

Question 5

Which contract type places the greatest cost risk on the buyer?

Accepted Answer

Cost-plus-percentage-of-cost (CPPC)

Answer

CPPC reimburses all supplier costs plus a percentage fee, giving the supplier no incentive to control costs and exposing the buyer to unlimited cost growth.

(CPL) Certified Professional Logistician Practice Test

(CPL) Certified Professional Logistician Practice Test

CPL Strategic Sourcing & Procurement 2