APICS Certified Supply Chain Professional (CSCP) — Question 114

Which of the following statements best identifies the value of using a supplier rating system?

Answer options

• A. It provides an objective means for a company to determine outstanding suppliers.
• B. It allows customers to post chargebacks to suppliers.
• C. It offers a company an effective way to control suppliers' delivery processes.
• D. It ensures that all suppliers are using the same quality standards to manufacture products.

Correct answer: A

Explanation

The correct answer, A, highlights that a supplier rating system provides an impartial way to evaluate suppliers based on performance. Options B, C, and D, while relevant to supplier management, do not specifically address the objective evaluation aspect of a rating system.