ISM Supply Management Core - CORe Exam Questions

QUESTION NO: 1
A firm's primary goal for its upcoming raw material negotiations with a well-performing supplier is cost reduction. In order to achieve this, which of the following courses of action should supply management take?

QUESTION NO: 2
JKL, Inc. outsources its event services for large group training sessions and annual meetings. The contract requires the supplier to report program metrics, including cost savings. The savings method employed compares the hotel's initial bid to the final negotiated price. The first report shows significant hard savings on the average nightly rate for hotel rooms. JKL's category manager would like to claim the hard savings. Which of the following BEST describes why the finance department should deny this request?

QUESTION NO: 3
A supply manager holds a competitive, sealed bid for a piece of capital equipment. The equipment is of critical importance to the company's operations. The potential bidders include local, national, and international suppliers, as the company wants to receive as many bids as possible.
After the bid closing date, but before bid opening, a bidder contacts the supply manager and states that it made an error in its delivery time. The supplier asks if it can submit a corrected bid prior to opening. Which of the following is the BEST action for the supply manager to take?

QUESTION NO: 4
A manufacturing company with plants and suppliers in numerous locations wants to cut its travel budget for the next year by 20%. Which of the following is MOST likely to help reduce travel costs?

QUESTION NO: 5
A sourcing manager is evaluating the following bids:
Quality ScoreCost
Supplier 190$100,000
Supplier 290$104,000
Supplier 3100$105,000
Supplier 4100$110,000
To score the cost attribute, the company with the lowest cost is awarded 100 points. The remaining companies lose 1 point for every 1% in higher costs. The overall weighting for the score is 50% quality and 50% cost.
Which supplier should be awarded the contract?

QUESTION NO: 6
Consider the following supplier terms for the same product:
Supplier A:2%/15, Net 30
Supplier B:4°/o/5, Net 30
Which supplier's terms are more advantageous to the buying organization?

QUESTION NO: 7
A firm is developing a solicitation to purchase materials in order to meet the needs of a new product launch.
The firm anticipates that some or all of its existing suppliers will respond to the solicitation. Given this situation, which of the following is the BEST requirements gathering approach for the firm?

QUESTION NO: 8
A manufacturing firm has a product that has been experiencing shrinking profits. The product requires several high-tech parts with strict specification tolerances. The contract for these parts was recently renegotiated with favorable terms, including lower costs. The firm's supply manager has been asked to reduce the product's costs and improve margins. Given this situation, which of the following is the BES1 course of action that the supply manager can recommend?

QUESTION NO: 9
IJK, Inc. is currently under contract with Supplier X to provide parts utilized in retail products manufactured by IJK. Demand for UK's products is expected to increase dramatically, and thus the firm's supply manager wants to explore possible cost savings. Supplier X has been a reliable supplier for many years and provides excellent quality, on-time service, and a willingness to work with UK on improvements. However, the supply manager believes Supplier X's price is too high, as a competitor is offering a lower price. Given this situation, which of the following is the BEST course of action for UK's supply manager to take?