CPIM Practice Exam

What is a supplier defined as?

1. A provider of goods or services

2. A business that only sells goods

3. A marketplace for various sellers

4. A government entity that supplies products

The correct answer is: A provider of goods or services

The definition of a supplier as a provider of goods or services is accurate because it encompasses the broad role that suppliers play in the supply chain. Suppliers can offer a wide range of inputs, which can include raw materials, finished products, or services that businesses need to operate effectively. This definition highlights the essential function of suppliers in facilitating production processes and ensuring that companies have the necessary resources to meet customer demands. The other options are more limited in scope. A business that only sells goods does not account for suppliers who provide services, which are integral to many industries. A marketplace for various sellers focuses more on the platform aspect rather than the direct provision of goods or services. Lastly, a government entity that supplies products is a specific type of supplier but does not represent the general concept, which includes a vast array of commercial entities. Therefore, the first choice accurately reflects the inclusive nature of what a supplier is.