SCM201 LATEST 2026 EXAM QUESTIONS AND
SOLUTIONS GRADED A+
✔✔D - ✔✔Which of the following is NOT one of the management uses for the data
derived from a comprehensive cost-base supplier evaluation system?
a. Such a system provides the necessary information that allows a buyer to justify
buying from a preferred supplier despite a higher unit price.
b. The system allows a buyer to communicate the cost of specific nonperformance
events to the originating supplier, which then helps identify improvement opportunities.
c. Quantifying nonconformance costs can result in a chargeback to the offending
supplier for unplanned costs.
d. The system allows customized assignment of cost accounting codes depending on
how much money is left in the annual budget.
e. A buyer can use this data to identify longer-term sources of supply based on a
supplier's total cost performance history.
✔✔C - ✔✔The _____ is a normalization factor for the supplier performance index (SPI)
that eliminates high-dollar lot bias.
a. Cp
b. MRO
c. Q adjustment factor
d. Cpk
e. Rfx
✔✔B - ✔✔_____ is the process of identifying how many and which suppliers a buyer
will maintain.
a. Supply base optimization
b. Supply base rationalization
c. Six Sigma
d. Zero defects
e. Strategic sourcing
✔✔A - ✔✔_____ involves a detailed analysis of the supply base to ensure that only the
most capable and highest performing suppliers are kept in the supply base after it is
rationalized.
a. Supply base optimization
b. Outsourcing
c. Strategic sourcing
d. Supply base reduction
e. Supply base management
✔✔E - ✔✔Which of the following is NOT one of the advantages of a rationalized and
optimized supply base?
a. Buying from world-class suppliers.
b. Use of full-service suppliers.
c. Lower supply base administrative costs.
, d. Reduction of supply base risk.
e. Absence of competition.
✔✔A - ✔✔Which of the following is NOT one of the advantages of a rationalized and
optimized supply base?
a. Longer lead-times.
b. Use of full-service suppliers.
c. Lower total product cost.
d. Ability to pursue complex supply management strategies.
e. Buying from world-class suppliers.
✔✔D - ✔✔All of the following are possible risks of maintaining fewer suppliers EXCEPT
_____.
a. supplier dependency
b. supply disruption
c. overaggressive supply reduction
d. maintaining an all-foreign supply base
e. absence of competition
✔✔B - ✔✔In _____, a buyer selects or develops suppliers with multiple or redundant
capabilities.
a. single sourcing
b. cross-sourcing
c. global sourcing
d. strategic sourcing
e. sole sourcing
✔✔C - ✔✔Which of the following is NOT one of the formal approaches to supply base
rationalization?
a. Twenty/eighty rule.
b. "Improve or else" approach.
c. Global sourcing.
d. Triage approach.
e. Competency staircase approach.
✔✔E - ✔✔The _____ identifies those 20 percent of suppliers receiving the bulk of
purchase spend or that minority of suppliers that cause the most quality problems.
a. "improve or else" approach
b. triage approach
c. strategic sourcing approach
d. competency staircase approach
e. twenty/eighty rule
✔✔A - ✔✔The _____ provides all suppliers, regardless of their performance history, a
chance to remain in the supply base.
a. "improve or else" approach
SOLUTIONS GRADED A+
✔✔D - ✔✔Which of the following is NOT one of the management uses for the data
derived from a comprehensive cost-base supplier evaluation system?
a. Such a system provides the necessary information that allows a buyer to justify
buying from a preferred supplier despite a higher unit price.
b. The system allows a buyer to communicate the cost of specific nonperformance
events to the originating supplier, which then helps identify improvement opportunities.
c. Quantifying nonconformance costs can result in a chargeback to the offending
supplier for unplanned costs.
d. The system allows customized assignment of cost accounting codes depending on
how much money is left in the annual budget.
e. A buyer can use this data to identify longer-term sources of supply based on a
supplier's total cost performance history.
✔✔C - ✔✔The _____ is a normalization factor for the supplier performance index (SPI)
that eliminates high-dollar lot bias.
a. Cp
b. MRO
c. Q adjustment factor
d. Cpk
e. Rfx
✔✔B - ✔✔_____ is the process of identifying how many and which suppliers a buyer
will maintain.
a. Supply base optimization
b. Supply base rationalization
c. Six Sigma
d. Zero defects
e. Strategic sourcing
✔✔A - ✔✔_____ involves a detailed analysis of the supply base to ensure that only the
most capable and highest performing suppliers are kept in the supply base after it is
rationalized.
a. Supply base optimization
b. Outsourcing
c. Strategic sourcing
d. Supply base reduction
e. Supply base management
✔✔E - ✔✔Which of the following is NOT one of the advantages of a rationalized and
optimized supply base?
a. Buying from world-class suppliers.
b. Use of full-service suppliers.
c. Lower supply base administrative costs.
, d. Reduction of supply base risk.
e. Absence of competition.
✔✔A - ✔✔Which of the following is NOT one of the advantages of a rationalized and
optimized supply base?
a. Longer lead-times.
b. Use of full-service suppliers.
c. Lower total product cost.
d. Ability to pursue complex supply management strategies.
e. Buying from world-class suppliers.
✔✔D - ✔✔All of the following are possible risks of maintaining fewer suppliers EXCEPT
_____.
a. supplier dependency
b. supply disruption
c. overaggressive supply reduction
d. maintaining an all-foreign supply base
e. absence of competition
✔✔B - ✔✔In _____, a buyer selects or develops suppliers with multiple or redundant
capabilities.
a. single sourcing
b. cross-sourcing
c. global sourcing
d. strategic sourcing
e. sole sourcing
✔✔C - ✔✔Which of the following is NOT one of the formal approaches to supply base
rationalization?
a. Twenty/eighty rule.
b. "Improve or else" approach.
c. Global sourcing.
d. Triage approach.
e. Competency staircase approach.
✔✔E - ✔✔The _____ identifies those 20 percent of suppliers receiving the bulk of
purchase spend or that minority of suppliers that cause the most quality problems.
a. "improve or else" approach
b. triage approach
c. strategic sourcing approach
d. competency staircase approach
e. twenty/eighty rule
✔✔A - ✔✔The _____ provides all suppliers, regardless of their performance history, a
chance to remain in the supply base.
a. "improve or else" approach
