CPP CPP Supply Chain Management 1

Question 1

What is the primary goal of supply chain management in procurement?

Accepted Answer

Optimize the flow of goods, information, and finances from source to end customer

Answer

Supply chain management aims to optimize the entire flow of goods, information, and finances from raw materials through to the final customer.

Question 2

Which supply chain model is specifically designed to respond quickly to unpredictable demand?

Accepted Answer

Agile supply chain

Answer

An agile supply chain is built for speed and flexibility to respond quickly to volatile or unpredictable demand patterns.

Question 3

What does the 'bullwhip effect' describe in supply chain management?

Accepted Answer

Demand amplification upstream caused by small downstream demand fluctuations

Answer

The bullwhip effect describes how minor fluctuations in consumer demand get increasingly amplified as orders move upstream through the supply chain.

Question 4

What is 'supply chain visibility' primarily concerned with?

Accepted Answer

Real-time tracking and monitoring of goods and information across the supply chain

Answer

Supply chain visibility is the ability to track and monitor products, inventory, and information in real time across all supply chain tiers.

Question 5

Which of the following best describes a 'tier 1 supplier'?

Accepted Answer

A supplier that directly provides goods or services to the buying organization

Answer

A tier 1 supplier has a direct contractual relationship with the buying organization, as opposed to suppliers further up the chain.

CPP - Certified Procurement Professional Practice Test