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Supplier Relationship Management Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Supplier Relationship Management flashcards as text

  1. Which risk mitigation strategy involves qualifying two or more suppliers for the same component?

    Answer: Dual sourcing

    Dual sourcing qualifies multiple suppliers for the same item, ensuring supply continuity if one supplier experiences disruption.

  2. In a vendor-managed inventory (VMI) arrangement, who is responsible for monitoring stock levels and triggering replenishment?

    Answer: The supplier

    In VMI, the supplier monitors the buyer's inventory levels using shared data and takes responsibility for initiating replenishment orders.

  3. What does 'supplier tiering' refer to in supply chain management?

    Answer: Classifying suppliers by their level in the supply chain (Tier 1, Tier 2, etc.)

    Supplier tiering categorizes suppliers by their proximity to the buying organization in the supply chain, with Tier 1 supplying directly to the buyer.

  4. A buyer discovers that a Tier 1 supplier is sourcing critical raw materials from a Tier 2 supplier under labor violation sanctions. This situation highlights the importance of:

    Answer: Sub-tier supply chain visibility and risk management

    Sub-tier visibility allows buyers to identify and mitigate ethical, compliance, and operational risks that originate deeper in the supply chain.

  5. Which contract clause protects a buyer by allowing audits of a supplier's financial records and operational processes?

    Answer: Right-to-audit clause

    A right-to-audit clause grants the buyer contractual authority to inspect the supplier's books, processes, and compliance records.

  6. Early supplier involvement (ESI) in the product development phase primarily helps to:

    Answer: Leverage supplier expertise to improve design for manufacturability and reduce costs

    ESI brings supplier technical knowledge into design decisions early, improving manufacturability, reducing lead times, and lowering total costs.

  7. A total cost of ownership (TCO) analysis for a supplier selection decision should include which of the following beyond purchase price?

    Answer: Acquisition, possession, usage, and end-of-life costs

    TCO captures all costs across the full lifecycle of ownership, including ordering, receiving, quality, maintenance, and disposal costs.