CSCP Supplier Relationship Management 3

Question 1

What is 'collaborative planning, forecasting, and replenishment' (CPFR)?

Accepted Answer

A structured process where trading partners share data and jointly create demand forecasts and replenishment plans

Answer

CPFR is a trading partner collaboration model that replaces independent forecasting with joint planning to improve forecast accuracy and reduce supply chain costs.

Question 2

What is 'supply chain transparency' in the context of ethical sourcing?

Accepted Answer

The ability to see and verify labor, environmental, and social practices across all tiers of the supply chain

Answer

Ethical sourcing transparency requires visibility beyond tier-1 suppliers to ensure no labor violations, environmental harm, or corruption exists anywhere in the chain.

Question 3

In supplier risk management, 'concentration risk' refers to:

Accepted Answer

Over-reliance on a single supplier or geography for a critical input, creating vulnerability to disruption

Answer

Concentration risk arises when too much of a critical supply is sourced from one supplier or region, making the buyer highly vulnerable to that source's disruption.

Question 4

What is the primary benefit of 'open book costing' in supplier negotiations?

Accepted Answer

The supplier shares cost breakdowns, enabling collaborative cost reduction and fair price agreements

Answer

Open book costing enables joint identification of cost reduction opportunities because both parties can see exactly where money is being spent.

Question 5

A 'supplier code of conduct' is used primarily to:

Accepted Answer

Define minimum ethical, labor, environmental, and safety standards suppliers must meet to do business with the company

Answer

Supplier codes of conduct set baseline ESG (environmental, social, governance) expectations that all suppliers must comply with as a condition of doing business.

CSCP - Certified Supply Chain Professional Practice Test

CSCP - Certified Supply Chain Professional Practice Test

CSCP Supplier Relationship Management 3