SCM 4350 Exam 2 Questions with Correct Answers Latest Update 2025/2026
The SCM Seven-Step Sourcing Process - Answers Spend Analysis
Supply Market Assessment
Total Cost Analysis
Supplier Identification/Assessment
Sourcing Strategy
Supplier Negotiation/Selection
Contract Management Evaluation
Difference between supply base optimization and supplier rationalization (2) - Answers There is
no difference between them they mean the same thing.
What are the two risks for supplier rationalization? - Answers Picking the wrong supplier, Cutting
supply base too deeply.
Maverick Spend - Answers Spending outside of contracts. Spending in not good ways.
Single Source - Answers You choose to have 1 source out of the options you do have.
Sole Source - Answers Only source you have (only option you have).
The Make-or-Buy Decision (3) - Answers Keep our factories (and workers) operating at a high
capacity.
Keep proprietary technology or intellectual property (IP) out of the open market.
Higher quality
Shorter lead-times
More cost effective
Supplier Redundancy - Answers Building suppliers and adding them to strategy.
Refers to the ability to replace suppliers if the 1st thing isnt going as planned.
, Back-up plan, protect against disruption risk.
Backup or alternative suppliers and the amount of time it takes for an organization to switch
between suppliers following a disruption.
Supplier Financial Ratios (4) - Answers
Supplier Score carding - Answers Evaluation of supplier's performance using key performance
indicators.
Used to determine performance trends, along with relative performance compared to other
suppliers. (Make comparative analysis).
Portfolio Matrix (5) - Answers (Variables):
1) Value Potential (High and Low).
2) Supply Market Complexity or risk (High and Low).
Quadrants: Leverage, Critical, Bottleneck, and Routine
Standardization - Answers redesign, trying to reduce the variety in bill of materials.
Simplification - Answers Figure to minimize the moving parts, it means less things to break or
go wrong (simplify). Reduce cost, improve quality, basically reduce the line items in Bill of
materials.
Quality at the Source - Answers Doing it right the first time is the most cost effective.
Check suppliers' quality management processes (SPC) and supply management capabilities
(score carding).
ESI- Early supplier Involvement (focus on key, strategic suppliers)
Concurrent Engineering-simplification, standardized, DFM (design for manufacture)
Cost of Quality (2) - Answers (Cost of poor quality)
The SCM Seven-Step Sourcing Process - Answers Spend Analysis
Supply Market Assessment
Total Cost Analysis
Supplier Identification/Assessment
Sourcing Strategy
Supplier Negotiation/Selection
Contract Management Evaluation
Difference between supply base optimization and supplier rationalization (2) - Answers There is
no difference between them they mean the same thing.
What are the two risks for supplier rationalization? - Answers Picking the wrong supplier, Cutting
supply base too deeply.
Maverick Spend - Answers Spending outside of contracts. Spending in not good ways.
Single Source - Answers You choose to have 1 source out of the options you do have.
Sole Source - Answers Only source you have (only option you have).
The Make-or-Buy Decision (3) - Answers Keep our factories (and workers) operating at a high
capacity.
Keep proprietary technology or intellectual property (IP) out of the open market.
Higher quality
Shorter lead-times
More cost effective
Supplier Redundancy - Answers Building suppliers and adding them to strategy.
Refers to the ability to replace suppliers if the 1st thing isnt going as planned.
, Back-up plan, protect against disruption risk.
Backup or alternative suppliers and the amount of time it takes for an organization to switch
between suppliers following a disruption.
Supplier Financial Ratios (4) - Answers
Supplier Score carding - Answers Evaluation of supplier's performance using key performance
indicators.
Used to determine performance trends, along with relative performance compared to other
suppliers. (Make comparative analysis).
Portfolio Matrix (5) - Answers (Variables):
1) Value Potential (High and Low).
2) Supply Market Complexity or risk (High and Low).
Quadrants: Leverage, Critical, Bottleneck, and Routine
Standardization - Answers redesign, trying to reduce the variety in bill of materials.
Simplification - Answers Figure to minimize the moving parts, it means less things to break or
go wrong (simplify). Reduce cost, improve quality, basically reduce the line items in Bill of
materials.
Quality at the Source - Answers Doing it right the first time is the most cost effective.
Check suppliers' quality management processes (SPC) and supply management capabilities
(score carding).
ESI- Early supplier Involvement (focus on key, strategic suppliers)
Concurrent Engineering-simplification, standardized, DFM (design for manufacture)
Cost of Quality (2) - Answers (Cost of poor quality)
