CSCP Sourcing and Supplier Management 2 — Questions and Answers
Question 1: Which supplier evaluation method scores vendors across weighted criteria such as quality, delivery, and cost to produce a single comparative ranking?
- Weighted point evaluation (Correct answer)
- Total cost of ownership analysis
- Kraljic portfolio matrix
- Value stream mapping
Correct answer: Weighted point evaluation
The weighted point evaluation method assigns importance weights to multiple criteria and aggregates scores to rank suppliers objectively.
Question 2: A company discovers that a sole-source supplier accounts for 80% of a critical component. Which risk mitigation strategy is most appropriate?
- Dual sourcing the component (Correct answer)
- Increasing safety stock only
- Negotiating longer lead times
- Switching to make-to-order
Correct answer: Dual sourcing the component
Dual sourcing introduces a second qualified supplier, reducing dependency on a single source and lowering supply disruption risk.
Question 3: In a supplier development program, which activity directly improves a supplier's process capability?
- Providing engineering or technical assistance on-site (Correct answer)
- Issuing a request for quotation
- Publishing an approved vendor list
- Conducting quarterly business reviews only
Correct answer: Providing engineering or technical assistance on-site
On-site technical assistance actively transfers knowledge and tools to help the supplier improve its manufacturing or service processes.
Question 4: What does the term 'spend analysis' primarily help a procurement team accomplish?
- Identify consolidation opportunities and leverage with suppliers (Correct answer)
- Calculate the reorder point for each SKU
- Determine the optimal safety stock level
- Map the physical flow of goods through the warehouse
Correct answer: Identify consolidation opportunities and leverage with suppliers
Spend analysis aggregates purchasing data by category and supplier to reveal where volume can be consolidated for better negotiating power.
Question 5: Which contract type places the greatest cost risk on the buyer?
- Cost-plus-fixed-fee contract (Correct answer)
- Firm fixed-price contract
- Fixed-price with economic price adjustment
- Time-and-materials contract
Correct answer: Cost-plus-fixed-fee contract
A cost-plus-fixed-fee contract reimburses all allowable costs plus a set fee, so cost overruns are borne entirely by the buyer.
Question 6: Early supplier involvement (ESI) is most beneficial during which phase of new product development?
- Concept and design phase (Correct answer)
- Production ramp-up phase
- End-of-life phase
- Post-launch review phase
Correct answer: Concept and design phase
Involving suppliers during concept and design allows them to influence specifications for manufacturability, cost, and material availability before commitments are locked in.
Question 7: A buyer uses a reverse auction to select a logistics provider. What is the PRIMARY advantage of this approach?
- It drives price competition among pre-qualified suppliers in real time (Correct answer)
- It guarantees the highest quality service provider wins
- It eliminates the need for a request for proposal
- It locks in a long-term partnership automatically
Correct answer: It drives price competition among pre-qualified suppliers in real time
Reverse auctions create a competitive bidding environment where suppliers lower prices in real time, directly reducing purchase cost.
CSCP Sourcing and Supplier Management 2
Which supplier evaluation method scores vendors across weighted criteria such as quality, delivery, and cost to produce a single comparative ranking?