Free L4M4 – Ethical and Responsible Sourcing Practice Test Question

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• ○ Post contract payment stages
• ○ Contract termination stages only
• ○ Pre contract sourcing stages
• ○ Supplier exit stages only

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• ○ Sourcing excludes supplier selection
• ○ Sourcing means manufacturing internally
• ○ Outsourcing transfers work externally
• ○ Outsourcing removes all supplier risk

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• ○ Contract length versus payment terms
• ○ Internal capability versus external supply
• ○ Two external supplier quotations
• ○ Supplier size versus supplier location

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• ○ Lowest spot purchase price
• ○ Long term value creation
• ○ Single transaction cost savings
• ○ Short term supplier rotation

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• ○ One supplier for requirement
• ○ Many suppliers in competition
• ○ Suppliers chosen by lottery
• ○ Two suppliers sharing volume

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• ○ Contract management effort required
• ○ Supply disruption risk exposure
• ○ Need for supplier appraisal
• ○ Quality inspection requirements entirely

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• ○ Make or buy model
• ○ Single sourcing arrangement model
• ○ Dual sourcing arrangement model
• ○ Intra company trading model

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• ○ Supplier dependency risk growth
• ○ Elimination of contract costs
• ○ Loss of direct control
• ○ Guaranteed quality improvement always

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• ○ Financial stability assessment results
• ○ Supplier brand popularity ranking
• ○ Quality management capability evidence
• ○ Proximity to buyer's home

Answer is in the explanation below.

Answer is in the explanation below.

Answer is in the explanation below.