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CORE Exam Dumps : Supply Management Core Exam

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Supply Management Core Exam Questions and Answers

Question 1

EFG uses specialized components from Supplier A in the manufacture of state-of-the-art testing equipment. Supplier A has been very successful in meeting EFG's stringent quality specifications, which has been critical for EFG.

EFG learns that Supplier A plans to acquire a smaller firm which makes components similar to those under contract with EFG. EFG is concerned that the supplier may transfer its contract to the new subsidiary, leading to compromises in quality. Given this situation, which of the following is the BEST course of action for EFG to take?

Options:

A.

Negotiate with Supplier A to remove the changes clause from the contract

B.

Negotiate with Supplier A to strengthen the indemnification clause in the contract

C.

Negotiate with Supplier A to add a consent of assignment clause to the contract

D.

Take no action, as Supplier A must supply the chips at the same quality level no matter who manufactures them

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Question 2

An organization selects a supplier for a complex system implementation that will be conducted in several stages. Prompt initiation of the project is necessary in order to maintain the schedule, but the stakeholders have not yet defined the later milestones and deliverables. Which of the following would be the MOST appropriate course of action for the buying organization to take regarding the statement of work (SOW) for this project?

Options:

A.

Create an initial SOW to allow the supplier to begin the first phase, with provisions for negotiating subsequent SOWs for full project implementation

B.

Provide a SOW with all requirements available thus far, and include procedures for internal customers to make changes via contract amendments

C.

Issue a general letter of intent so that the supplier can start mobilizing and avoid delays

D.

Postpone any type of agreement with the supplier until all requirements are fully defined

Question 3

A firm has repeatedly experienced communication problems with three crucial suppliers. The firm's supply manager concludes that many of these problems are the result of not having regular business reviews with these suppliers. However, all three suppliers have indicated that they do not see the value in regular business reviews. Given this situation, which of the following is the BEST course of action for the supplier manager to take?

Options:

A.

Contact the CEO of each supplier and request that they encourage the firm to participate in the business reviews

B.

Advise the suppliers that failure to meet for the reviews will result in payments being suspended

C.

Advise the suppliers that their performance is not acceptable, and that they must improve or face further penalties

D.

Develop a specific agenda for the suppliers that identifies items to address and accomplish during the business review