Deepseek
Understanding Supplier Relationships (Questions 1–15)
1. What is the primary goal of Supplier Relationship Management
(SRM)?
A) Minimizing supplier numbers
B) Maximizing short-term cost savings
C) Creating mutual value through collaboration
D) Centralizing procurement decisions
2. Which model categorizes suppliers based on their strategic
importance and supply risk?
A) Kraljic Matrix
B) Porter’s Value Chain
C) SWOT Analysis
D) PESTLE Analysis
3. A transactional supplier relationship is most appropriate for:
A) High-value, strategic goods
B) Low-risk, routine purchases
C) Innovation-driven projects
D) Sole-source suppliers
4. Which of the following is a characteristic of a collaborative
supplier relationship?
A) Short-term contracts
B) Joint problem-solving
C) Price-focused negotiations
D) Minimal communication
5. The "Sharpe Model" for supplier segmentation classifies
suppliers based on:
A) Cost and quality
B) Innovation and risk
C) Spend volume and relationship complexity
D) Geographic location
Supplier Relationship Strategies (Questions 6–20)
6. In SRM, a "strategic alliance" typically involves:
A) Annual price renegotiations
B) Shared goals and long-term commitments
C) Adversarial negotiations
D) Limited information sharing
7. Which strategy is best for managing a high-risk, sole-source
supplier?
A) Leverage competitive bidding
B) Develop contingency plans
C) Ignore risks to maintain goodwill
D) Switch suppliers immediately
8. What is a key benefit of supplier development programs?
A) Reducing supplier dependence
B) Improving supplier capabilities and performance
C) Eliminating contract terms
D) Lowering procurement staff costs
9. A supplier’s poor delivery performance is affecting operations.
What is the first step?
A) Terminate the contract
B) Conduct a root-cause analysis
C) Publicly criticize the supplier
D) Reduce order volumes
10. Which tool helps map supplier relationships based on
power dynamics?
A) Force Field Analysis
B) Mendelow’s Matrix
C) Pareto Chart
D) Balanced Scorecard
Performance Management and KPIs (Questions 21–35)
21. Which KPI is most relevant for measuring supplier
delivery performance?
A) Cost savings achieved
B) On-time delivery rate
C) Number of invoices processed
D) Supplier profit margin
22. A supplier scorecard should include:
A) Competitors’ pricing data
B) Agreed KPIs and performance metrics
C) Employee turnover rates
D) Marketing strategies
23. What is the purpose of a Service Level Agreement (SLA)?
A) Define payment terms
B) Set measurable performance standards
C) Outline supplier ownership structure
D) Specify employee training requirements
24. Continuous improvement in supplier relationships is best
achieved through:
A) Annual audits
B) Regular performance reviews and feedback
C) One-time training sessions
D) Reducing communication
25. A supplier fails to meet quality standards. What action
aligns with SRM best practices?
A) Impose financial penalties immediately
B) Collaborate to identify corrective actions
C) Switch suppliers without notice
D) Hide the issue from stakeholders
Conflict Resolution and Collaboration (Questions 36–50)
36. A supplier disputes payment terms. The best approach is
to:
A) Escalate to legal teams
B) Seek a win-win compromise
C) Cancel the contract
D) Ignore the dispute
37. Which technique helps resolve misunderstandings in
supplier negotiations?
A) Active listening
B) Threatening penalties
C) Reducing order volumes
D) Public shaming
38. Joint business planning with suppliers aims to:
A) Transfer all risks to the supplier
B) Align objectives and share benefits
C) Hide procurement budgets
D) Avoid long-term commitments
39. What is a common cause of supplier conflicts?
A) Transparent communication
B) Unclear contract terms
C) Regular performance reviews
D) Shared innovation goals
40. A supplier raises concerns about unrealistic deadlines.
How should you respond?
A) Dismiss their concerns
B) Adjust timelines collaboratively
C) Threaten to find a new supplier
D) Stop all communications
Ethics and Sustainability (Questions 51–60)
51. Ethical supplier relationships require:
A) Ignoring labor practices for cost savings
B) Compliance with fair trade and labor laws
C) Prioritizing local suppliers exclusively
D) Avoiding environmental audits
52. A supplier offers a bribe to secure a contract. What
should you do?
A) Accept the bribe discreetly
B) Report the incident to authorities
C) Negotiate a higher bribe
D) Award the contract to avoid delays
53. Sustainable SRM practices focus on:
A) Short-term cost reductions
B) Long-term environmental and social impact
C) Maximizing supplier turnover
D) Hiding sustainability failures
54. What is a key element of a supplier code of conduct?
A) Permitting child labor
B) Ensuring safe working conditions
C) Allowing forced overtime
D) Ignoring waste disposal laws
55. How can procurement promote ethical practices in the
supply chain?
A) Conduct regular supplier audits
B) Avoid asking about sourcing practices
C) Prioritize the cheapest suppliers
D) Limit transparency
