Free ISM CORE Exam Questions

Become ISM Certified with updated CORE exam questions and correct answers

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Total 182 Questions | Updated On: Jun 03, 2024

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Question 1

A service provider has experienced diminished value and stagnant results within an important category. Which of the following is the BEST course of action the firm can take to improve the category strategy?

A : Open existing contracts and retender them

B : Network with suppliers and launch RFIs to look at alternative solutions

C : Conduct category rotation to bring a different viewpoint to the management of the category

D : Conduct an in-house survey with key stakeholders

Answer: C

Question 2

Which of the following contract types is an agreement to pay a specified price when the items or services have been delivered and accepted?

A : Incentive

B : Fixed price incentive

C : Firm fixed price

D : Cost

Answer: C

Question 3

A company's major supplier of sub-assemblies provides excellent quality and reasonable costs. However, shipping delays and damage in transit make this supplier less reliable than desired. The supply manager would like to retain this supplier if possible, but is concerned about the reliability issues. Given this situation, which of the following is the BEST course of action for the supply manager to take?

A : Negotiate lower prices to compensate for the impact of delivery problems

B : Collaborate with the supplier to improve its outbound logistics

C : Increase forecasting lead times and safety stock for the supplier's products

D : Give the supplier a deadline by which to remedy unsatisfactory performance

Answer: B

Question 4

As interest rates rise, what will MOST likely be the effect on supply?

A : Suppliers will lock in raw material prices in anticipation of price increases.

B : Suppliers will delay shipments by selling to other customers.

C : Bond prices will rise, forcing suppliers to pay more for capital investments.

D : The risk of supplier stock outs will increase due to higher costs of holding inventory.

Answer: D

Question 5

At what point in the development of a category strategy should spend review occur?

A : After key internal stakeholders agree on sourcing priorities

B : After development of the sourcing team

C : After presentation of the strategy to senior management

D : During validation of the savings or contribution

Answer: D

Page: 1 / 37

Total 182 Questions | Updated On: Jun 03, 2024

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