CSCP CSCP Sourcing and Supplier Management Questions and Answers 2 — Questions and Answers
Question 1: Which sourcing strategy involves awarding contracts to multiple suppliers to reduce dependency on a single source?
- Sole sourcing
- Single sourcing
- Multi-sourcing (Correct answer)
- Insourcing
Correct answer: Multi-sourcing
Multi-sourcing distributes orders across several suppliers to mitigate supply disruption risk and maintain competitive pricing.
Question 2: What is the primary purpose of a supplier scorecard in supply chain management?
- To negotiate lower prices
- To measure and track supplier performance against key metrics (Correct answer)
- To replace supplier audits entirely
- To determine shipping routes
Correct answer: To measure and track supplier performance against key metrics
Supplier scorecards systematically evaluate supplier performance on metrics such as quality, delivery, cost, and responsiveness.
Question 3: In a total cost of ownership (TCO) analysis for sourcing decisions, which of the following is typically included beyond the purchase price?
- Only transportation costs
- Quality inspection, maintenance, and disposal costs (Correct answer)
- Marketing expenses for the finished product
- Competitor pricing data
Correct answer: Quality inspection, maintenance, and disposal costs
TCO captures all lifecycle costs including acquisition, quality, maintenance, warehousing, and end-of-life disposal beyond the unit price.
Question 4: What does the Kraljic Matrix primarily help procurement teams accomplish?
- Forecast demand for raw materials
- Segment purchases by supply risk and profit impact to determine sourcing strategies (Correct answer)
- Calculate economic order quantities
- Schedule production runs
Correct answer: Segment purchases by supply risk and profit impact to determine sourcing strategies
The Kraljic Matrix classifies items into four quadrants based on supply risk and profit impact to guide differentiated sourcing strategies.
Question 5: Which supplier development activity involves a buying organization sending its own personnel to work at a supplier's facility?
- Competitive bidding
- Supplier co-location
- Reverse auction
- Supplier resident engineer program (Correct answer)
Correct answer: Supplier resident engineer program
A supplier resident engineer program places the buyer's technical staff at the supplier site to directly support process improvements and quality.
Question 6: What is a key risk of relying on a sole-source supplier for a critical component?
- Reduced administrative overhead
- Supply disruption if the supplier experiences a catastrophic event (Correct answer)
- Lower unit costs from volume commitments
- Simplified quality standards
Correct answer: Supply disruption if the supplier experiences a catastrophic event
Sole sourcing creates a single point of failure where any disruption at that supplier can halt the buyer's entire production.
CSCP CSCP Sourcing and Supplier Management Questions and Answers 2
Which sourcing strategy involves awarding contracts to multiple suppliers to reduce dependency on a single source?