FREE PDF 2025 ISM CORE: ACTUAL SUPPLY MANAGEMENT CORE EXAM TESTS

Free PDF 2025 ISM CORe: Actual Supply Management Core Exam Tests

Free PDF 2025 ISM CORe: Actual Supply Management Core Exam Tests

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Printable CORe PDF & CORe Reliable Test Answers

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ISM Supply Management Core Exam Sample Questions (Q13-Q18):

NEW QUESTION # 13
The chief procurement officer (CPO) for a large hospital system is planning to implement a new e-sourcing system. Satellite clinics and specialty centers will be authorized to process small orders through this system, rather than sending requests to the central supply management department, as has been done in the past. Which of the following actions by the CPO will MOST likely support a successful implementation of this system?

  • A. Scheduling on-site demonstrations of leading software systems
  • B. Providing regular progress reports to top management
  • C. Visiting similar organizations to see how their systems operate
  • D. Building a team of potential users to help define needs

Answer: D

Explanation:
To support a successful implementation of a new e-sourcing system, the CPO should build a team of potential users to help define needs. Involving end-users early in the process ensures that the system will meet their requirements and be user-friendly. This approach facilitates buy-in and adoption, as users feel their input is valued and the system is tailored to their specific needs. It also helps identify potential challenges and areas for improvement before full-scale implementation.
References:
* "Implementing E-Procurement: A Project Management Perspective" by Ewa Chmielewska-Muciek.
* Case studies on e-sourcing system implementations from Gartner.
* Best practices for e-procurement from the National Institute of Governmental Purchasing (NIGP).


NEW QUESTION # 14
Topic 1, Business Analytic
Exhibit:

Based on the scatterplot below, which of the following correlation coefficients BEST describes the relationship between undergraduate GPA and beginning annual salary?

  • A. -0.9
  • B. -0.2
  • C. 0.2
  • D. 0.9

Answer: D


NEW QUESTION # 15
A chief executive officer (CEO) asks a supply manager to prepare a statement of work for a consultant to perform audit services. The consultant occasionally does other non-audit work for the company. In this situation, which of the following is the BEST course of action for the supply manager to take?

  • A. Explain to the CEO the conflict of interest in contracting with an existing consultant as an auditor, and recommend alternative solutions
  • B. Prioritize execution of the statement of work, as it has likely been mandated by the board of directors
  • C. Review professional service rates for the audit services and verify they are competitive prior to executing the statement of work
  • D. Recommend giving a presentation to the board of directors on the category strategy for consulting and professional services

Answer: A

Explanation:
In situations where a consultant performing audit services also engages in other non-audit work for the company, a conflict of interest may arise, compromising the integrity and objectivity of the audit. It is crucial to address this issue transparently with the CEO, explaining the potential conflict and recommending alternative solutions, such as engaging a different consultant or firm for the audit. This approach ensures compliance with ethical standards and maintains the credibility of the audit process.References:
* IFAC (International Federation of Accountants) Code of Ethics for Professional Accountants.
* ISM (Institute for Supply Management) guidelines on professional services procurement.


NEW QUESTION # 16
Which of the following refers to the process of generating information about the types of items sourced and their cumulative dollar value, to use for strategic and operational purchase planning?

  • A. Spend analysis
  • B. Regression analysis
  • C. Cost analysis
  • D. Portfolio analysis

Answer: A

Explanation:
Spend analysis is the process of collecting, cleansing, classifying, and analyzing expenditure data with the purpose of reducing procurement costs, improving efficiency, and monitoring compliance. It generates information about the types of items sourced and their cumulative dollar value, providing insights that can be used for strategic and operational purchase planning.
References
* Spend Analysis: The Window into Strategic Sourcing by Kirit Pandit and Haralambos Marmanis
* "Spend Analysis: A Critical Element of Strategic Sourcing" - Aberdeen Group


NEW QUESTION # 17
A software design firm has traditionally done most of its work in-house, including support services and distribution management. The firm is planning a large expansion, and is evaluating how the various departments can support It. The chief executive officer (CEO) recommends concentrating on core competencies to increase the firm's agility and emphasize what differentiates them from competitors. Which of the following is the BEST way supply management can support this recommendation?

  • A. Develop better e-procurement processes
  • B. Develop and implement an organization-wide strategic sourcing plan
  • C. Identify opportunities to outsource non-core business functions
  • D. Conduct a spend analysis on strategic items

Answer: C

Explanation:
* Context: The firm is expanding and looking to concentrate on core competencies to increase agility and differentiate from competitors.
* Core Competencies: These are the unique capabilities that give a firm a competitive advantage.
* Supply Management's Role: To support the CEO's recommendation, supply management should focus
* on outsourcing non-core activities. This allows the firm to allocate more resources and focus on what they do best.
* Outsourcing: By identifying non-core functions that can be outsourced, the firm can become more agile, reduce costs, and improve efficiency.
* Evaluation: Conducting a spend analysis or developing better e-procurement processes are useful, but they don't directly address the CEO's strategy of focusing on core competencies. An organization-wide strategic sourcing plan is broader and less focused on core vs. non-core activities.
* Conclusion: The best way for supply management to support the recommendation is by identifying and outsourcing non-core business functions.
References
* Core Competency Theory by Prahalad and Hamel.
* Strategic Management of Supply Chains by David Simchi-Levi.
* Supply Chain Management: Strategy, Planning, and Operation by Sunil Chopra.


NEW QUESTION # 18
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