CSCP CSCP Sourcing Products and Services Questions and Answers 3

Question 1

What is a key risk associated with sole sourcing a critical component?

Accepted Answer

Supply disruption if the single supplier experiences a failure

Answer

Higher per-unit transportation costs

Answer

Increased administrative overhead from managing contracts

Answer

Difficulty in standardizing component specifications

Question 2

Which metric best evaluates supplier delivery performance?

Accepted Answer

On-time delivery rate

Answer

Cost variance percentage

Answer

Inventory turnover ratio

Answer

Return on assets

Question 3

In the Kraljic portfolio matrix, how should 'bottleneck' items be managed?

Accepted Answer

By securing supply continuity and developing alternative sources

Answer

Through competitive bidding to reduce costs

Answer

By reducing purchase volumes to minimize exposure

Answer

Through just-in-time delivery to lower inventory costs

Question 4

What does the term 'maverick spending' refer to in procurement?

Accepted Answer

Buying goods or services outside established contracts and procurement policies

Answer

Purchasing from innovative startup suppliers

Answer

Investing in speculative raw materials futures

Answer

Allocating budget to emergency expedited shipments

Question 5

Which supplier evaluation method uses weighted scoring across multiple performance criteria?

Accepted Answer

Weighted-point method

Answer

Categorical method

Answer

Cost-ratio method

Answer

Activity-based costing

Question 6

What is the primary benefit of implementing a supplier relationship management (SRM) program?

Accepted Answer

Building collaborative partnerships that drive continuous improvement and mutual value

Answer

Eliminating the need for purchase orders

Answer

Automating all procurement transactions

Answer

Reducing the supplier base to a single vendor per category