Supplier Evaluation & Selection Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Supplier Evaluation & Selection flashcards as text
Which tool uses a weighted scoring matrix to compare suppliers across multiple criteria simultaneously?
Answer: Vendor scorecard
A vendor scorecard applies predetermined weights to criteria such as quality, delivery, and price to produce a comparative numerical score for each supplier.
A supplier audit reveals that a vendor's ISO 9001 certification lapsed six months ago. What is the MOST appropriate immediate action?
Answer: Issue a corrective action request and set a recertification deadline
A corrective action request documents the nonconformance and establishes a timeline for the supplier to restore its certification status.
What does 'financial stability analysis' of a supplier typically include?
Answer: Examination of current ratio, debt-to-equity, and cash flow statements
Financial stability analysis examines liquidity ratios, leverage ratios, and cash flow to assess the supplier's ability to fulfill long-term obligations.
When evaluating a sole-source supplier, which risk mitigation strategy is MOST effective?
Answer: Increasing safety stock and qualifying an alternative supplier simultaneously
Holding safety stock provides short-term buffer while qualifying an alternative supplier addresses the root cause of single-source dependency.
The 'three bids and a buy' policy is designed primarily to ensure:
Answer: Competitive pricing through market exposure
Soliciting at least three competitive bids ensures the buying organization obtains market-rate pricing and demonstrates due diligence.
Which supplier evaluation criterion addresses a vendor's ability to scale production in response to demand surges?
Answer: Capacity and flexibility
Capacity and flexibility evaluates whether a supplier can increase output volumes and adjust scheduling to meet the buyer's peak or variable demand.
A cross-functional sourcing team includes engineering, quality, and finance representatives. What is the PRIMARY benefit of this structure?
Answer: It ensures decisions reflect multiple organizational perspectives and requirements
Cross-functional teams integrate technical, quality, and financial expertise so that supplier selection decisions satisfy the full range of organizational needs.