CPSM Supplier Relationship Management 4

Question 1

Which metric is MOST useful for measuring a supplier's delivery reliability over time?

Accepted Answer

On-time delivery rate

Answer

On-time delivery rate directly measures whether a supplier consistently meets agreed delivery schedules.

Question 2

A buyer discovers that a key supplier is financially distressed. What is the BEST immediate action?

Accepted Answer

Conduct a financial risk assessment and develop a contingency plan

Answer

A financial risk assessment combined with a contingency plan allows the buyer to understand exposure and prepare alternatives without disrupting supply.

Question 3

In supplier segmentation, which quadrant of the Kraljic Matrix represents items with high supply risk and low profit impact?

Accepted Answer

Bottleneck items

Answer

Bottleneck items have high supply risk but low profit impact, requiring supply security strategies.

Question 4

What is the primary purpose of a Supplier Code of Conduct?

Accepted Answer

To define ethical, social, and environmental standards suppliers must meet

Answer

A Supplier Code of Conduct communicates the buyer's expectations for ethical behavior, labor practices, and environmental responsibility.

Question 5

Which approach BEST describes 'open book costing' in a supplier relationship?

Accepted Answer

The supplier shares all cost breakdowns with the buyer to enable joint cost reduction

Answer

Open book costing involves the supplier transparently sharing cost data so buyer and supplier can collaborate to reduce costs.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supplier Relationship Management 4