CPP Supplier Relationship Management 3

Question 1

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

Accepted Answer

Dual sourcing

Answer

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

Question 2

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

Accepted Answer

The supplier

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 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:

Accepted Answer

Sub-tier supply chain visibility and risk management

Answer

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

Question 5

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

Accepted Answer

Right-to-audit clause

Answer

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

(CPP) Certified Purchasing Professional Practice Test

(CPP) Certified Purchasing Professional Practice Test

CPP Supplier Relationship Management 3