Task 5 Identify Sustainable Procurement Practices for a Given Scenario CSPP Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A company is selecting a supplier for raw materials. One supplier offers a significantly lower price but is known to source from regions with reported child labor. Another supplier is more expensive but has certifications for fair labor practices. The company has a strict ethical procurement policy. What should the company do?

   • AChoose the cheaper supplier to reduce costs, and rely on the company's code of conduct to protect against labor issues.
   • BChoose the cheaper supplier but require it to sign a document stating it will not use child labor.
   • CChoose the more expensive supplier with fair labor certifications, and document the decision as an ethical investment.
   • DNegotiate with the cheaper supplier to reduce its price further, and then choose it to maximize savings.
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2. 7expert · hard

   A company is selecting a supplier for a critical component. Supplier A has excellent sustainability credentials but is located in a region prone to natural disasters, which could disrupt supply. Supplier B has moderate sustainability credentials but is located in a stable region. The company has a strong sustainability policy but also needs to ensure supply chain resilience. What should the company do?

   • ASelect Supplier B because supply chain resilience is more important than sustainability.
   • BSelect Supplier A but develop a contingency plan to mitigate supply disruption risks.
   • CSelect Supplier B and work with it to improve its sustainability performance over time.
   • DSelect Supplier A because sustainability is the top priority, and accept the supply chain risk.
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4. 8foundation · easy

   Which of the following is an action a project manager can take to foster continuous improvement in a supplier's sustainability performance?

   • AReduce the frequency of audits to save costs
   • BWait until contract closeout to evaluate performance
   • CConduct regular sustainability performance reviews and share best practices
   • DIgnore minor non-compliance to maintain a good relationship
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5. 9expert · hard

   A company is procuring a research and development project with high uncertainty in both scope and cost. The company wants to encourage the supplier to develop innovative sustainable solutions, such as new recycling technologies. The company is willing to share cost risk but wants to reward successful outcomes. Which contract type is most appropriate?

   • ATime and materials contract without performance incentives
   • BFixed-price contract
   • CFixed-price contract with a bonus for exceeding sustainability targets
   • DCost-reimbursable contract with an incentive fee for achieving sustainability milestones
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6. 10expert · hard

   A company is sourcing raw materials from a region that is experiencing water scarcity. The supplier uses a significant amount of water in its production process. The company has a sustainability policy that includes water stewardship. The supplier is the only one that can meet the company's quality and delivery requirements. What should the company do?

   • ATerminate the relationship with the supplier and find a new one, even if it means compromising on quality.
   • BContinue with the supplier because there are no alternatives, and accept the water risk.
   • CIgnore the water issue and focus on cost and delivery, as they are more important.
   • DWork with the supplier to implement water-saving measures and explore alternative sources of supply.
   Reveal Solution Discussion Select an answer first