Supplier Relationship Management 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 Relationship Management flashcards as text
Which metric best measures a supplier's ability to deliver goods without defects over time?
Answer: Defect parts per million (DPPM)
Defect parts per million (DPPM) directly quantifies the frequency of defective units in a supplier's output, making it the primary quality metric.
A buying organization shares its 12-month demand forecast with a key supplier so the supplier can plan capacity. This practice is best described as:
Answer: Collaborative planning and forecasting
Collaborative planning and forecasting involves sharing demand data between buyer and supplier to align production capacity and reduce supply chain uncertainty.
What is the primary purpose of a supplier corrective action request (SCAR)?
Answer: To formally require a supplier to identify and fix the root cause of a nonconformance
A SCAR formally obligates the supplier to investigate root causes and implement corrective actions to prevent recurrence of a nonconformance.
During a supplier business review, which framework helps categorize improvement opportunities by separating vital few issues from trivial many?
Answer: Pareto analysis
Pareto analysis (80/20 rule) identifies the small number of issues that cause the majority of problems, guiding prioritization of improvement efforts.
A company reduces its supplier base from 200 to 50 vendors. The primary strategic goal of this initiative is to:
Answer: Deepen relationships and leverage with fewer, higher-quality suppliers
Supplier rationalization consolidates spend with fewer suppliers to build stronger partnerships, improve quality, and increase purchasing leverage.
Which type of supplier relationship requires the highest level of buyer investment and information sharing?
Answer: Strategic alliance
Strategic alliances involve deep integration, joint development, and extensive information sharing, requiring the greatest investment from both parties.
A supplier scorecard shows a vendor scoring 65 out of 100 for three consecutive quarters. The buyer's most appropriate next step is to:
Answer: Issue a supplier development plan with defined improvement targets and timelines
A sustained low score warrants a formal supplier development plan that sets measurable targets and timelines to guide improvement before escalating to termination.