CPSM Supply Management Core 4

Question 1

Under the UCC Article 2, a purchase order becomes a binding contract when:

Accepted Answer

A valid offer is accepted by the other party

Answer

Under UCC Article 2, a contract for the sale of goods is formed when a valid offer is accepted, and acceptance can occur through conduct such as shipment of goods.

Question 2

A supply manager implementing Just-in-Time (JIT) inventory should PRIMARILY focus on reducing:

Accepted Answer

Lead time variability

Answer

JIT depends on predictable, short lead times; lead time variability forces safety stock buffers that negate JIT's waste-elimination benefits.

Question 3

Which sustainability standard specifically addresses supply chain labor practices and social responsibility?

Accepted Answer

SA8000

Answer

SA8000 is an international social accountability standard focused on workplace conditions including child labor, forced labor, health and safety, and freedom of association.

Question 4

A buyer receives goods that do not conform to the contract specification. Under the UCC 'perfect tender rule,' the buyer may:

Accepted Answer

Accept, reject, or partially accept the shipment

Answer

The UCC perfect tender rule allows the buyer to accept all goods, reject all goods, or accept conforming units and reject nonconforming units if the seller tenders imperfect goods.

Question 5

A supply manager calculates a supplier's on-time delivery rate at 72% over 12 months against a target of 95%. The MOST appropriate next step is to:

Accepted Answer

Issue a corrective action request and establish an improvement timeline

Answer

A corrective action request (CAR) formally documents the performance gap, requires root cause analysis from the supplier, and establishes measurable improvement milestones.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supply Management Core 4