Supply Chain Management Supplier Management 2

Question 1

A company discovers that a key supplier has been falsifying quality inspection reports. What is the MOST appropriate immediate response?

Accepted Answer

Suspend the supplier and initiate an internal audit of affected materials

Answer

Suspending the supplier and auditing affected materials protects the company from liability while investigating the scope of the falsification.

Question 2

Which supplier segmentation model categorizes suppliers based on supply risk and profit impact?

Accepted Answer

Kraljic Portfolio Matrix

Answer

The Kraljic Portfolio Matrix segments suppliers into four quadrants based on supply risk and profit impact, guiding strategic relationship decisions.

Question 3

What does 'supplier tiering' refer to in supply chain management?

Accepted Answer

Classifying suppliers by their position in the supply chain relative to the end customer

Answer

Supplier tiering classifies suppliers as Tier 1 (direct), Tier 2 (suppliers to Tier 1), and so on, mapping the full supply chain structure.

Question 4

A buyer wants to reduce dependency on a single-source supplier for a critical component. Which strategy BEST addresses this risk?

Accepted Answer

Dual-source the component by qualifying a second supplier

Answer

Dual-sourcing qualifies a second supplier, directly reducing single-source dependency and providing competitive leverage.

Question 5

Which metric measures the percentage of purchase orders fulfilled completely and on time by a supplier?

Accepted Answer

Perfect Order Rate

Answer

Perfect Order Rate measures the percentage of orders that are complete, on time, undamaged, and correctly invoiced — a comprehensive supplier fulfillment metric.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Supplier Management 2