SCM201 UPDATED 2026 EXAM SCRIPT QUESTIONS AND
SOLUTIONS GRADED A+
✔✔40. _____ helps ensure that customers receive material when and where they
require it and represents the key link between the producer and the external customer.
a. Order processing
b. Inbound transportation
c. Customer service
d. Scheduling
e. Inventory control - ✔✔A
✔✔41. The _____ activity involves physically getting a product ready for distribution to
the customer.
a. customer service
b. material control
c. materials handling
d. quality control
e. shipping - ✔✔E
✔✔42. Which of the following is not one of the four enablers of purchasing and supply
chain management?
a. Sufficient cash flow and large on-hand cash deposits.
b. Capable human resources.
c. Proper organizational design.
d. Real-time collaborative technology capabilities.
e. Right measures and measurement systems. - ✔✔A
✔✔43. Recent research indicates that all of the following are top knowledge areas for
purchasers except _____.
a. supplier relationship management
b. total cost analysis
c. supplier analysis
d. consumer behavior
e. competitive market analysis - ✔✔D
✔✔44. _____ refers to the process of assessing and selecting the structure and formal
system of communication, division of labor, coordination, control, authority, and
responsibility required to achieve organizational goals and objectives, including supply
chain objectives.
a. Supply chain orientation
b. Human resource management
c. Demand planning
d. Organizational design
e. Extended value chain - ✔✔D
,✔✔45. _____ seeks to improve forecast accuracy, optimize production scheduling,
reduce working capital costs, shorten cycle times, cut transportation costs, and improve
customer service; while _____ helps obtain materials and manage physical flows from
suppliers through downstream distribution to ensure that customers receive the right
products at the right location, time, and cost.
a. RFID....GPS
b. Execution software....planning software
c. Customer service....inbound transportation
d. The process approach....cost management
e. Planning software....execution software - ✔✔E
✔✔46. All of the following are roadblocks between measurement and improved
performance except _____.
a. up-to-date information technology
b. too many metrics
c. debate over the correct metrics
d. constantly changing metrics
e. old data - ✔✔A
✔✔CHAP2
29. The _____ is used to identify user requirements, evaluate the user needs effectively
and efficiently, identify suppliers who can meet that need, develop agreements with
those suppliers, develop the ordering mechanism, ensure payment occurs promptly,
ascertain that the need was effectively met, and drive continuous improvement.
a. demand management process
b. backdoor buying process
c. materials budgeting process
d. forecasting process
e. purchasing process - ✔✔E
✔✔30. All of the following are objectives of a world-class purchasing organization
except _____.
a. ensure that all hard copies of purchase orders and other paper documents are filed
correctly in a secure area
b. develop integrated supply strategies that support business goals and objectives
c. manage the sourcing process efficiently and effectively
d. supplier performance management
e. supply assurance - ✔✔A
✔✔31. Failing to respond to the needs of internal customers will diminish the confidence
these users have in purchasing, and they may try to negotiate contracts themselves (a
practice known as _____).
a. strategic sourcing
b. spend management
c. maverick buying
,d. outsourcing
e. internal sourcing - ✔✔C
✔✔32. One of the most important objectives of the purchasing function is the selection,
development, and maintenance of suppliers, a process that is sometimes described as
_____.
a. supplier performance management
b. category management
c. customer service
d. procure-to-pay
e. maverick buying - ✔✔A
✔✔33. Which of the following is not one of the objectives in supplier performance
management?
a. Selecting suppliers that are competitive.
b. Identifying new suppliers that have the potential for excellent performance and
developing closer relationships with these suppliers.
c. Improving existing suppliers.
d. Developing new suppliers that are not competitive with current suppliers.
e. Ensuring timely and accurate payment of supplier invoices. - ✔✔E
✔✔34. Effective supply market intelligence involves all of the following except _____.
a. updating supply markets and trends and translating their impacts on key business
outcomes
b. ensuring that purchasing does not exceed its annual operating budget
c. identifying emerging materials and service technologies to support company
strategies in key performance areas
d. developing supply options and contingency plans to reduce risk
e. supporting the organization's requirements for a diverse and globally competitive
supply base - ✔✔B
✔✔35. _____ is the process of collecting historical data by commodity, relative to
demand from the lines of business, with the exception of personnel expenses,
occupancy, and corporate spend.
a. Demand management
b. Supply analysis
c. Category management
d. Contract management
e. Spend analysis - ✔✔E
✔✔36. _____ is the process of using unit and rate consumption levels to forecast and
estimate future consumption in an internal functional customer and providing guidance
and input on how to optimize usage and educating the user on the trade-offs.
a. Specification management
b. Demand management
, c. Category management
d. Supply market intelligence
e. Cost management - ✔✔B
✔✔37. _____ is the process of developing insights into stakeholder requirements,
comparing these to external industry intelligence, supply base capabilities and
operational risks, and developing a strategy to align internal requirements with external
supply market conditions.
a. Spend analysis
b. Cost management
c. Contract management
d. Category management
e. Procure-to-pay - ✔✔D
✔✔38. _____ is a situation that occurs when sellers seek to "go around" purchasing
and instead directly contact and attempt to sell directly to end users (stakeholders).
a. Insourcing
b. Bidding
c. Maverick buying and selling
d. Negotiating
e. Outsourcing - ✔✔C
✔✔39. _____ is a process associated with defining the contract, defining roles and
responsibilities of both parties, and advising when to modify and ensure appropriate
escalation.
a. Spend analysis
b. Contract management
c. Cost management
d. Supplier selection
e. Category management - ✔✔B
✔✔40. _____ involves unbundling the price paid and understanding the total cost of
ownership over the life cycle of a product or service to deliver a target cost and a unit
rate to determine if it is priced competitively in the marketplace.
a. Cost management
b. Procure-to-pay
c. Supplier relationship management
d. Category management
e. Spend management - ✔✔A
✔✔41. _____ is the end-to-end process of managing a supplier through the entire
sourcing life cycle, which includes first identifying the abilities of a particular company
with regard to performing a service for the internal customer, completing a sourcing
event, negotiating a contract, executing an order, and determining payment.
a.,P2P
SOLUTIONS GRADED A+
✔✔40. _____ helps ensure that customers receive material when and where they
require it and represents the key link between the producer and the external customer.
a. Order processing
b. Inbound transportation
c. Customer service
d. Scheduling
e. Inventory control - ✔✔A
✔✔41. The _____ activity involves physically getting a product ready for distribution to
the customer.
a. customer service
b. material control
c. materials handling
d. quality control
e. shipping - ✔✔E
✔✔42. Which of the following is not one of the four enablers of purchasing and supply
chain management?
a. Sufficient cash flow and large on-hand cash deposits.
b. Capable human resources.
c. Proper organizational design.
d. Real-time collaborative technology capabilities.
e. Right measures and measurement systems. - ✔✔A
✔✔43. Recent research indicates that all of the following are top knowledge areas for
purchasers except _____.
a. supplier relationship management
b. total cost analysis
c. supplier analysis
d. consumer behavior
e. competitive market analysis - ✔✔D
✔✔44. _____ refers to the process of assessing and selecting the structure and formal
system of communication, division of labor, coordination, control, authority, and
responsibility required to achieve organizational goals and objectives, including supply
chain objectives.
a. Supply chain orientation
b. Human resource management
c. Demand planning
d. Organizational design
e. Extended value chain - ✔✔D
,✔✔45. _____ seeks to improve forecast accuracy, optimize production scheduling,
reduce working capital costs, shorten cycle times, cut transportation costs, and improve
customer service; while _____ helps obtain materials and manage physical flows from
suppliers through downstream distribution to ensure that customers receive the right
products at the right location, time, and cost.
a. RFID....GPS
b. Execution software....planning software
c. Customer service....inbound transportation
d. The process approach....cost management
e. Planning software....execution software - ✔✔E
✔✔46. All of the following are roadblocks between measurement and improved
performance except _____.
a. up-to-date information technology
b. too many metrics
c. debate over the correct metrics
d. constantly changing metrics
e. old data - ✔✔A
✔✔CHAP2
29. The _____ is used to identify user requirements, evaluate the user needs effectively
and efficiently, identify suppliers who can meet that need, develop agreements with
those suppliers, develop the ordering mechanism, ensure payment occurs promptly,
ascertain that the need was effectively met, and drive continuous improvement.
a. demand management process
b. backdoor buying process
c. materials budgeting process
d. forecasting process
e. purchasing process - ✔✔E
✔✔30. All of the following are objectives of a world-class purchasing organization
except _____.
a. ensure that all hard copies of purchase orders and other paper documents are filed
correctly in a secure area
b. develop integrated supply strategies that support business goals and objectives
c. manage the sourcing process efficiently and effectively
d. supplier performance management
e. supply assurance - ✔✔A
✔✔31. Failing to respond to the needs of internal customers will diminish the confidence
these users have in purchasing, and they may try to negotiate contracts themselves (a
practice known as _____).
a. strategic sourcing
b. spend management
c. maverick buying
,d. outsourcing
e. internal sourcing - ✔✔C
✔✔32. One of the most important objectives of the purchasing function is the selection,
development, and maintenance of suppliers, a process that is sometimes described as
_____.
a. supplier performance management
b. category management
c. customer service
d. procure-to-pay
e. maverick buying - ✔✔A
✔✔33. Which of the following is not one of the objectives in supplier performance
management?
a. Selecting suppliers that are competitive.
b. Identifying new suppliers that have the potential for excellent performance and
developing closer relationships with these suppliers.
c. Improving existing suppliers.
d. Developing new suppliers that are not competitive with current suppliers.
e. Ensuring timely and accurate payment of supplier invoices. - ✔✔E
✔✔34. Effective supply market intelligence involves all of the following except _____.
a. updating supply markets and trends and translating their impacts on key business
outcomes
b. ensuring that purchasing does not exceed its annual operating budget
c. identifying emerging materials and service technologies to support company
strategies in key performance areas
d. developing supply options and contingency plans to reduce risk
e. supporting the organization's requirements for a diverse and globally competitive
supply base - ✔✔B
✔✔35. _____ is the process of collecting historical data by commodity, relative to
demand from the lines of business, with the exception of personnel expenses,
occupancy, and corporate spend.
a. Demand management
b. Supply analysis
c. Category management
d. Contract management
e. Spend analysis - ✔✔E
✔✔36. _____ is the process of using unit and rate consumption levels to forecast and
estimate future consumption in an internal functional customer and providing guidance
and input on how to optimize usage and educating the user on the trade-offs.
a. Specification management
b. Demand management
, c. Category management
d. Supply market intelligence
e. Cost management - ✔✔B
✔✔37. _____ is the process of developing insights into stakeholder requirements,
comparing these to external industry intelligence, supply base capabilities and
operational risks, and developing a strategy to align internal requirements with external
supply market conditions.
a. Spend analysis
b. Cost management
c. Contract management
d. Category management
e. Procure-to-pay - ✔✔D
✔✔38. _____ is a situation that occurs when sellers seek to "go around" purchasing
and instead directly contact and attempt to sell directly to end users (stakeholders).
a. Insourcing
b. Bidding
c. Maverick buying and selling
d. Negotiating
e. Outsourcing - ✔✔C
✔✔39. _____ is a process associated with defining the contract, defining roles and
responsibilities of both parties, and advising when to modify and ensure appropriate
escalation.
a. Spend analysis
b. Contract management
c. Cost management
d. Supplier selection
e. Category management - ✔✔B
✔✔40. _____ involves unbundling the price paid and understanding the total cost of
ownership over the life cycle of a product or service to deliver a target cost and a unit
rate to determine if it is priced competitively in the marketplace.
a. Cost management
b. Procure-to-pay
c. Supplier relationship management
d. Category management
e. Spend management - ✔✔A
✔✔41. _____ is the end-to-end process of managing a supplier through the entire
sourcing life cycle, which includes first identifying the abilities of a particular company
with regard to performing a service for the internal customer, completing a sourcing
event, negotiating a contract, executing an order, and determining payment.
a.,P2P
