CPP Cheat Sheet 2026

The 30 highest-yield CPP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which supply chain model is specifically designed to respond quickly to unpredictable demand? → Agile supply chain
2. What is a 'stockout' in inventory management? → A situation where inventory is depleted and customer demand cannot be fulfilled
3. Which quality control tool uses a diagram shaped like a fishbone to identify potential causes of a defect or problem? → Ishikawa (cause-and-effect) diagram
4. Which clause defines consequences for non-performance? → Termination clause
5. What is the main goal of strategic sourcing in procurement? → To align sourcing strategy with business goals
6. Which quality management philosophy, developed by W. Edwards Deming, emphasizes a systematic four-step iterative cycle of Plan, Do, Check, Act? → PDCA (Deming) Cycle
7. What is the primary benefit of clear contract terms in procurement? → To reduce legal risks and misunderstandings
8. A supplier scorecard shows that a vendor has a high rate of non-conforming parts. The FIRST corrective action a procurement professional should request is: → A root cause analysis and corrective action plan (CAPA)
9. What does 'demand planning' involve in supply chain management? → Forecasting future customer demand to optimize inventory and production decisions
10. How should financial planning performance be reported to clients? → Provide accurate, complete, and timely performance reporting with appropriate benchmarks
11. Which act is designed to promote fair competition in the U.S.? → Sherman Antitrust Act
12. What does 'lead time' mean in procurement and logistics? → The total elapsed time from placing a purchase order to receiving the goods
13. What continuing education requirement supports estate planning competence? → Ongoing education in regulatory changes, market developments, and best practices
14. What continuing education requirement supports risk assessment competence? → Ongoing education in regulatory changes, market developments, and best practices
15. Which benefit is associated with long-term supplier partnerships? → Shared innovation and continuous improvement
16. How should conflicts of interest be managed in portfolio management? → Identify, disclose, and mitigate all actual and potential conflicts of interest
17. What is considered a violation of ethical purchasing behavior? → Receiving personal gifts from suppliers
18. What negotiation tactic involves asking for more than you expect to receive? → Anchoring
19. What is a Request for Proposal (RFP) primarily used for? → To solicit detailed bids from suppliers
20. Why is supplier relationship management important? → To foster collaboration and improve supply chain performance
21. How should investment analysis performance be reported to clients? → Provide accurate, complete, and timely performance reporting with appropriate benchmarks
22. Which performance metric measures the percentage of orders delivered both on time and in full? → OTIF (On Time In Full)
23. What fiduciary duty applies to financial planning? → Act in the client's best interest with loyalty, care, and full disclosure
24. How should conflicts of interest be managed in financial planning? → Identify, disclose, and mitigate all actual and potential conflicts of interest
25. What regulatory compliance requirement applies to investment analysis? → Full compliance with all applicable federal, state, and industry regulations
26. How should tax strategies performance be reported to clients? → Provide accurate, complete, and timely performance reporting with appropriate benchmarks
27. What is 'reshoring' in supply chain management? → Bringing manufacturing or supply operations back to the home country
28. What is the primary goal of supply chain management in procurement? → Optimize the flow of goods, information, and finances from source to end customer
29. How can a buyer strengthen their position in negotiations? → Have alternative suppliers in place
30. A buyer receives a shipment with 3 defective units out of 500. The supplier's AQL is set at 0.4%. What is the defect rate of this shipment? → 0.6%