SCM 406 SUPPLY CHAIN MANAGEMENT EXAM 2 2026
[DATE]
LATEST QUESTIONS AND ANSWERS
SCM 406 Supply Chain Management EXAM 2 2026 LATEST
QUESTIONS AND ANSWERS, Exams of Supply Management
Which of the following is one of the key criteria for evaluating a supplier?
Quality
All things considered, which firm has the best current ratio:
A. Firm A with a current ratio of 2.1
B. Firm B with a current ratio less than 0
C. Firm C with a current ratio of 1.0
Days sales outstanding should be as close to zero as possible?
FALSE, you want it low, but not too close to 0
Net profit margin is equal to:
Profit after taxes/sales
The number of days it takes for a customer to pay you is called
Days sales outstanding
Some buyers are now asking suppliers to break down price quotations so buyers can see labor,
[Date]
materials, overhead, and mark-up cost components
1
, SCM 406 SUPPLY CHAIN MANAGEMENT EXAM 2 2026
[DATE]
LATEST QUESTIONS AND ANSWERS
TRUE
Cash-to-cash cycle time is the time between receiving raw materials and receiving payment from
customers:
TRUE
Is it possible to have negative cash to cash cycle time
True
A supplier scorecard should be:
-as comprehensive and objective as possible
-simple to understand
-include performance categories important to managing your supply item
A firm with a high current debt to equity ratio may have issues paying its bills:
True
It's a good idea to measure performance of all your suppliers
False
Supplier performance measurement scorecards should consist of
[Date]
Qualitative factors
2
, SCM 406 SUPPLY CHAIN MANAGEMENT EXAM 2 2026
[DATE]
LATEST QUESTIONS AND ANSWERS
Quantitative factors
A qualitative measure to include a supplier scorecard would be
Responsiveness to your concerns
The most commonly used approach to measuring suppliers is
Measuring suppliers based on categories with weights assigned to them
A cost-based system approach to measurement tracks not only purchase costs for an item, but also the
costs of doing business with that supplier
True
The key when rationalizing your supply base is to come up with the
"right" number of suppliers for your supply base
Supply base optimization is a continuous process once your supply base is rationalized
True
It's easier to compare performance supplier to supplier when using what system
Using a weighted-point system where you can calculate a composite index score
[Date]
3
[DATE]
LATEST QUESTIONS AND ANSWERS
SCM 406 Supply Chain Management EXAM 2 2026 LATEST
QUESTIONS AND ANSWERS, Exams of Supply Management
Which of the following is one of the key criteria for evaluating a supplier?
Quality
All things considered, which firm has the best current ratio:
A. Firm A with a current ratio of 2.1
B. Firm B with a current ratio less than 0
C. Firm C with a current ratio of 1.0
Days sales outstanding should be as close to zero as possible?
FALSE, you want it low, but not too close to 0
Net profit margin is equal to:
Profit after taxes/sales
The number of days it takes for a customer to pay you is called
Days sales outstanding
Some buyers are now asking suppliers to break down price quotations so buyers can see labor,
[Date]
materials, overhead, and mark-up cost components
1
, SCM 406 SUPPLY CHAIN MANAGEMENT EXAM 2 2026
[DATE]
LATEST QUESTIONS AND ANSWERS
TRUE
Cash-to-cash cycle time is the time between receiving raw materials and receiving payment from
customers:
TRUE
Is it possible to have negative cash to cash cycle time
True
A supplier scorecard should be:
-as comprehensive and objective as possible
-simple to understand
-include performance categories important to managing your supply item
A firm with a high current debt to equity ratio may have issues paying its bills:
True
It's a good idea to measure performance of all your suppliers
False
Supplier performance measurement scorecards should consist of
[Date]
Qualitative factors
2
, SCM 406 SUPPLY CHAIN MANAGEMENT EXAM 2 2026
[DATE]
LATEST QUESTIONS AND ANSWERS
Quantitative factors
A qualitative measure to include a supplier scorecard would be
Responsiveness to your concerns
The most commonly used approach to measuring suppliers is
Measuring suppliers based on categories with weights assigned to them
A cost-based system approach to measurement tracks not only purchase costs for an item, but also the
costs of doing business with that supplier
True
The key when rationalizing your supply base is to come up with the
"right" number of suppliers for your supply base
Supply base optimization is a continuous process once your supply base is rationalized
True
It's easier to compare performance supplier to supplier when using what system
Using a weighted-point system where you can calculate a composite index score
[Date]
3
