CPSM Supply Management Core

Question 1

What is the purpose of supply chain management?

Accepted Answer

To ensure timely delivery and reduce production costs

Answer

To track inventory levels only

Answer

To increase the number of suppliers

Answer

To eliminate transportation costs

Question 2

How does inventory management contribute to supply chain efficiency?

Accepted Answer

It ensures products are available without excessive stockholding

Answer

It focuses on increasing product variety

Answer

It reduces the need for suppliers

Answer

It increases operational delays

Question 3

What is the role of procurement in supply management?

Accepted Answer

To purchase goods and services while negotiating prices

Answer

To track product performance

Answer

To manage product distribution channels

Answer

To monitor customer feedback

Question 4

Why is supplier relationship management important in supply management?

Accepted Answer

To maintain strong partnerships and improve supplier performance

Answer

To limit supplier choices

Answer

To negotiate lower prices only

Answer

To ensure suppliers are only located locally

Question 5

What is the role of forecasting in supply chain management?

Accepted Answer

It ensures timely delivery based on predicted demand

Answer

It helps increase production rates

Answer

It reduces supplier costs

Answer

It focuses on product storage only

Question 6

Why is logistics management critical in supply chain operations?

Accepted Answer

It manages the movement and storage of goods in an efficient manner

Answer

It tracks sales and customer satisfaction

Answer

It focuses on reducing the number of suppliers

Answer

It tracks product returns only

Question 7

What is the importance of cost control in supply management?

Accepted Answer

It helps manage operational costs effectively

Answer

It increases product prices

Answer

It reduces workforce size

Answer

It minimizes supplier choices

Question 8

How does sustainability impact supply management?

Accepted Answer

It emphasizes ethical sourcing and reducing environmental impacts

Answer

It focuses on increasing production speed

Answer

It reduces product quality

Answer

It focuses on maximizing profits only

Question 9

What is the role of risk management in supply chain operations?

Accepted Answer

It helps identify and manage potential risks to ensure continuity

Answer

It focuses on increasing the number of suppliers

Answer

It reduces product variety

Answer

It focuses on maximizing resource allocation