CPSM Supply Management Integration 4

Question 1

In supply management integration, 'make-or-buy' analysis PRIMARILY considers:

Accepted Answer

Core competency, total cost, capacity, risk, and strategic fit of producing versus procuring

Answer

Make-or-buy decisions require a multi-factor analysis including cost, strategic alignment, core competency, capacity, and supply risk.

Question 2

A supply management team is implementing supplier-managed inventory (SMI). Which internal function MUST be closely integrated for this to succeed?

Accepted Answer

Operations and IT to share real-time consumption and inventory data with the supplier

Answer

SMI requires that operations consumption data and inventory levels flow electronically to the supplier so they can replenish proactively.

Question 3

Which approach BEST integrates supply management with an organization's sustainability goals?

Accepted Answer

Extending sustainability criteria into supplier selection, evaluation, and development programs

Answer

Integrating sustainability into supplier selection and development programs embeds environmental and social criteria throughout the supply chain.

Question 4

Which risk integration practice BEST prepares an organization for supply chain disruptions?

Accepted Answer

Maintaining a risk register with identified supply risks, owners, and mitigation plans updated regularly

Answer

A living risk register with assigned owners and mitigation plans ensures proactive, cross-functional management of supply chain risks.

Question 5

When integrating supply management with legal, which activity is MOST critical during contract negotiations?

Accepted Answer

Ensuring contract terms reflect both commercial intent and legal enforceability

Answer

Effective supply-legal integration ensures that what procurement negotiates commercially is accurately and legally enforceable in the final contract.

(CPSM) Certified Professional in Supply Management Practice Test