CSCP FREE Certified Supply Chain Professional (CSCP) Sourcing Products and Services Questions and Answers 2 — Questions and Answers
Question 1: Which sourcing strategy involves awarding a contract to a single supplier for a specific product or service?
- Dual sourcing
- Sole sourcing (Correct answer)
- Multi-sourcing
- Near-sourcing
Correct answer: Sole sourcing
Sole sourcing deliberately selects one supplier, often to leverage volume discounts or unique capabilities.
Question 2: What is the primary purpose of a Request for Proposal (RFP) in the sourcing process?
- To place a purchase order
- To invite suppliers to submit detailed solutions and pricing (Correct answer)
- To negotiate final contract terms
- To evaluate supplier financial health
Correct answer: To invite suppliers to submit detailed solutions and pricing
An RFP solicits comprehensive proposals from potential suppliers, including their approach, capabilities, and pricing.
Question 3: In a total cost of ownership (TCO) analysis for sourcing, which of the following is considered an indirect cost?
- Unit purchase price
- Freight charges
- Quality inspection and rework costs (Correct answer)
- Import duties
Correct answer: Quality inspection and rework costs
Quality inspection and rework are indirect costs incurred after purchase that add to the total cost beyond the initial price.
Question 4: What does the Kraljic Matrix classify as 'bottleneck' items?
- High profit impact, low supply risk
- Low profit impact, high supply risk (Correct answer)
- High profit impact, high supply risk
- Low profit impact, low supply risk
Correct answer: Low profit impact, high supply risk
Bottleneck items have low profit impact but high supply risk, requiring supply assurance strategies.
Question 5: Which contract type places the most financial risk on the buyer?
- Fixed-price contract
- Cost-plus-percentage-of-cost contract (Correct answer)
- Time and materials contract
- Cost-plus-fixed-fee contract
Correct answer: Cost-plus-percentage-of-cost contract
Cost-plus-percentage-of-cost contracts incentivize higher supplier spending since the fee grows with costs, shifting risk to the buyer.
Question 6: What is the key benefit of implementing e-procurement systems for sourcing?
- Eliminating the need for supplier negotiations
- Automating purchase requisitions and reducing cycle times (Correct answer)
- Guaranteeing lowest possible prices
- Removing the need for supplier evaluation
Correct answer: Automating purchase requisitions and reducing cycle times
E-procurement automates routine purchasing tasks, reducing processing time and administrative costs.
CSCP FREE Certified Supply Chain Professional (CSCP) Sourcing Products and Services Questions and Answers 2
Which sourcing strategy involves awarding a contract to a single supplier for a specific product or service?