Supply Chain Management Supplier Management 5

Question 1

A company uses an e-procurement portal to run a reverse auction for a commodity purchase. What is the key advantage of this approach?

Accepted Answer

It drives competitive price reduction through real-time bidding among multiple suppliers

Answer

Reverse auctions create downward price pressure by having multiple suppliers compete in real time, typically resulting in lower purchase prices for commodity goods.

Question 2

Which of the following BEST describes 'consignment inventory' as a supplier arrangement?

Accepted Answer

The supplier retains ownership of inventory stored at the buyer's facility until it is consumed

Answer

In consignment, the supplier owns the inventory at the buyer's site and is only paid when the buyer uses or sells it, reducing the buyer's working capital requirements.

Question 3

What is the main objective of a 'supplier rationalization' initiative?

Accepted Answer

Reducing the supplier base to a manageable number of strategic, high-performing vendors

Answer

Supplier rationalization consolidates the supply base by eliminating underperforming or redundant suppliers, focusing resources on fewer, more strategic relationships.

Question 4

A procurement team evaluates suppliers using a weighted scorecard with criteria: price (30%), quality (40%), delivery (20%), and innovation (10%). Supplier A scores 80/80/90/70. What is Supplier A's weighted total score?

Accepted Answer

81

Answer

Weighted score = (80×0.30)+(80×0.40)+(90×0.20)+(70×0.10) = 24+32+18+7 = 81.

Question 5

Which international standard specifically addresses quality management system requirements that suppliers are often required to certify to?

Accepted Answer

ISO 9001

Answer

ISO 9001 specifies requirements for a quality management system and is the most widely required supplier quality certification globally.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Supplier Management 5