CPSM Supplier Relationship Management 3

Question 1

The primary objective of a supplier audit in SRM is to:

Accepted Answer

Verify that the supplier's processes, capabilities, and compliance meet defined requirements

Answer

Supplier audits assess whether a supplier's actual practices conform to agreed standards, identifying gaps that may require corrective actions before they impact supply quality or compliance.

Question 2

In the context of SRM, 'collaborative forecasting' between buyer and supplier is designed to:

Accepted Answer

Align supply and demand planning to reduce bullwhip effects and improve forecast accuracy

Answer

Collaborative forecasting synchronizes buyer demand signals with supplier production planning, dampening the demand amplification (bullwhip effect) that causes overproduction and stockouts.

Question 3

A buyer wants to measure how well a supplier is improving over time. Which type of performance target is MOST appropriate?

Accepted Answer

Continuous improvement (CI) targets that ratchet upward each performance period

Answer

Continuous improvement targets that incrementally increase expectations each period drive ongoing supplier development and prevent complacency in established relationships.

Question 4

Which of the following BEST describes 'gain sharing' in supplier relationships?

Accepted Answer

Both parties share financial benefits realized from jointly implemented cost reductions or innovations

Answer

Gain sharing is a collaborative incentive model where buyer and supplier pre-agree to split financial savings or revenue from joint improvement initiatives, motivating both parties to invest in the effort.

Question 5

Early Supplier Involvement (ESI) in new product development provides the benefit of:

Accepted Answer

Incorporating supplier expertise in design to improve manufacturability, cost, and time-to-market

Answer

ESI leverages supplier technical knowledge during the design phase, enabling design-for-manufacturability improvements, material substitutions, and process optimizations that reduce cost and launch time.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supplier Relationship Management 3