CSCP Supplier Relationship Management 2

Question 1

What is the purpose of a 'supplier development' program?

Accepted Answer

To systematically improve a supplier's capabilities, quality, and performance through joint investment and training

Answer

To qualify new suppliers to expand the supply base

Answer

To negotiate lower prices by developing competing suppliers

Answer

To audit supplier financial stability and credit risk

Question 2

In negotiation strategy, 'BATNA' stands for:

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

Best Approach To Negotiating Agreements

Answer

Basic Agreement Terms Negotiation Approach

Answer

Baseline Assessment of Total Negotiation Alternatives

Question 3

Which payment term represents the best opportunity for a buyer to improve working capital?

Accepted Answer

Net 90 (payment due in 90 days)

Answer

Net 30 (payment due in 30 days)

Answer

2/10 Net 30 (2% discount if paid in 10 days)

Answer

Cash in advance (payment before delivery)

Question 4

What does 'early supplier involvement' (ESI) in new product development achieve?

Accepted Answer

Incorporating supplier expertise during design to improve manufacturability, reduce costs, and shorten development cycles

Answer

Giving suppliers advance notice of future purchase volumes

Answer

Allowing suppliers to audit product designs for IP protection

Answer

Qualifying suppliers before the procurement process begins

Question 5

A 'preferred supplier' designation typically means:

Accepted Answer

The supplier meets all qualification criteria, receives first consideration for new business, and may get favorable terms

Answer

The supplier has the lowest prices in the category

Answer

The supplier is the only approved source for a specific item

Answer

The supplier provides the fastest lead times regardless of cost

Question 6

Which risk in supplier relationships is best mitigated by requiring suppliers to maintain business continuity plans?

Accepted Answer

Supply disruption risk from supplier facility disasters or operational failures

Answer

Price increase risk from commodity market volatility

Answer

Quality failure risk from inadequate process controls

Answer

Intellectual property risk from supplier knowledge leakage