CPP Supplier Evaluation & Selection 2

Question 1

Which tool uses a weighted scoring matrix to compare suppliers across multiple criteria simultaneously?

Accepted Answer

Vendor scorecard

Answer

A vendor scorecard applies predetermined weights to criteria such as quality, delivery, and price to produce a comparative numerical score for each supplier.

Question 2

A supplier audit reveals that a vendor's ISO 9001 certification lapsed six months ago. What is the MOST appropriate immediate action?

Accepted Answer

Issue a corrective action request and set a recertification deadline

Answer

A corrective action request documents the nonconformance and establishes a timeline for the supplier to restore its certification status.

Question 3

What does 'financial stability analysis' of a supplier typically include?

Accepted Answer

Examination of current ratio, debt-to-equity, and cash flow statements

Answer

Financial stability analysis examines liquidity ratios, leverage ratios, and cash flow to assess the supplier's ability to fulfill long-term obligations.

Question 4

When evaluating a sole-source supplier, which risk mitigation strategy is MOST effective?

Accepted Answer

Increasing safety stock and qualifying an alternative supplier simultaneously

Answer

Holding safety stock provides short-term buffer while qualifying an alternative supplier addresses the root cause of single-source dependency.

Question 5

The 'three bids and a buy' policy is designed primarily to ensure:

Accepted Answer

Competitive pricing through market exposure

Answer

Soliciting at least three competitive bids ensures the buying organization obtains market-rate pricing and demonstrates due diligence.

(CPP) Certified Purchasing Professional Practice Test

(CPP) Certified Purchasing Professional Practice Test

CPP Supplier Evaluation & Selection 2