ISM Foundation of Supply Management - CPSM1 Exam Questions [2026]

QUESTION NO: 1
Forecasters also estimate bias by using a , which is a ratio of the running sum of forecast errors to the cumulative Mean Absolute Deviation (MAD).

A. Single period method B. Key pointer C. Tracking signal D. Mean square error method

Correct Answer: C

QUESTION NO: 2
Each forecast is weighted by a given decimal value, known as ,
which is the difference between the most recent actual demand and the forecast.

A. Demand constant B. Exponential constant C. Smoothing constant D. Alpha constant

Correct Answer: C

QUESTION NO: 3
A temporary endeavor undertaken to create a unique product or service is called:

A. Development B. Build C. Enterprise D. Project

Correct Answer: D

QUESTION NO: 4
Making environmentally
conscious
decisions throughout the purchasing process beginning with product and process design through product disposal is known as:

A. Green purchasing B. Purchasing Agreement C. Logistic purchasing D. None of the above

Correct Answer: A

QUESTION NO: 5
What is used to obtain general information about products, services or suppliers and is information request, not binding on either the supplier or the purchaser?

A. Solicitation document B. Procurement document C. Target market D. Qualified product description

Correct Answer: A

QUESTION NO: 6
According to Jason Westland, author of Project management Life Cycle, a business case should NOT include which of the following?

A. a description of the problem under consideration B. options available to solve the problem C. benefits, costs, risks and feasibility for each available option D. post-recommended solution

Correct Answer: D