LATEST CORE EXAM DISCOUNT & CORE VALID DUMPS DEMO

Latest CORe Exam Discount & CORe Valid Dumps Demo

Latest CORe Exam Discount & CORe Valid Dumps Demo

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ISM Supply Management Core Exam Sample Questions (Q68-Q73):

NEW QUESTION # 68
Which of the following BEST describes a single source supply strategy?

  • A. Selecting two or more suppliers for the same product, but purchasing from only one of them to increase the volume discount
  • B. Designing requirements so that only one supplier can meet the needs of the organization
  • C. Purchasing a product from one supplier for a period of time, then switching purchases to a new supplier for the same product
  • D. Awarding purchases to one supplier in preference over other suppliers

Answer: D

Explanation:
The option that BEST describes a single source supply strategy is A. Awarding purchases to one supplier in preference over other suppliers. Single sourcing occurs when a company chooses one supplier to provide all of its products, materials, parts, and components, even when there are other suppliers that can provide the same goods12. This strategy is often used to reduce costs and streamline the procurement process.


NEW QUESTION # 69
Two competing companies sell very similar products that are manufactured in plants located near each other in the United States. Company A values inventory using last-in, first-out (LIFO) and uses accelerated depreciation for plant assets. Company B values inventory using first-in, first-out (FIFO) and uses straight-line depreciation. From this information, what conclusions can an analyst draw about the gross margin reported for the two companies?

  • A. The analyst cannot draw conclusions from this information.
  • B. The gross margin would be higher for Company A.
  • C. The gross margin would be similar for both companies.
  • D. The gross margin would be higher for Company B.

Answer: A


NEW QUESTION # 70
A supply manager ensures that each stage of the negotiation process is documented, beginning with the preparations for the negotiation. What is the PRIMARY purpose of maintaining such information?

  • A. To clarify specifications and performance expectations
  • B. To identify weaknesses in the supplier's position
  • C. To provide justification for any concessions made
  • D. To ensure team members have accurate data

Answer: C

Explanation:
* Documenting Negotiations: Maintaining detailed records of each stage of the negotiation process ensures transparency and accountability.
* Justification for Concessions: Documentation provides a clear rationale for any concessions made during negotiations, supporting internal review and approval processes.
* Consistency: Ensures that all team members are informed and that the negotiation strategy is consistently applied.
* Post-Negotiation Analysis: Helps in reviewing the negotiation process to identify areas for improvement and lessons learned for future negotiations.
References
* ISM. (n.d.). Best Practices in Negotiation Documentation.
* CIPS. (n.d.). The Importance of Documentation in Procurement Negotiations.


NEW QUESTION # 71
A supply manager receives negative feedback from internal stakeholders about several suppliers. However, the scorecards for these suppliers have been positive over the past few quarters, and any diminished performance is not reflected. Which of the following MOST likely explains this situation?

  • A. The stakeholders' input to scorecards was improperly captured.
  • B. The scorecard metrics were calculated incorrectly.
  • C. The stakeholder requirements changed over time.
  • D. The stakeholders failed to attend quarterly review meetings.

Answer: C

Explanation:
* Review Stakeholder Feedback: Understanding the nature of the negative feedback is the first step.
* Analyze Scorecard Metrics: If the scorecards have been positive, but the feedback is negative, it suggests a misalignment.
* Identify Changes in Requirements: Stakeholders' needs and expectations might have evolved, and these changes may not be reflected in the current scorecard metrics.
* Adjust Metrics Accordingly: The scorecards should be updated to align with the new requirements to
* ensure they accurately reflect supplier performance.
References
* Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.
* van Weele, A. J. (2018). Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice. Cengage Learning.


NEW QUESTION # 72
An operations manager wants to replace the existing fleet of aging vehicles owned by the company. The operations manager presents the supply manager with a list denoting the quantity, makes and models currently in operation:
Quantity
Brand A - 4X4 SUVs15
Brand B - Midsize Cars5
Brand C - Compact Cars45
Which of the following is the BEST course of action for the supply manager to take?

  • A. Request quotations using generic specifications and performance requirements, with forecasted quantities to meet current and future needs
  • B. Request quotations for the makes, models and quantities of vehicles specified on the list
  • C. Request quotations for the listed makes and models of vehicles, with forecasted quantities to meet current and future needs
  • D. Request quotations for the listed quantities of vehicles, using generic specifications and performance requirements

Answer: A

Explanation:
Requesting quotations using generic specifications and performance requirements with forecasted quantities to meet current and future needs is the best course of action for the supply manager. This approach ensures flexibility in selecting the most cost-effective and suitable vehicles while considering future demands. By focusing on specifications and performance, the supply manager can compare different brands and models objectively, ensuring that the chosen vehicles meet the company's operational needs and budget constraints.
Additionally, considering future needs allows for strategic planning and potential cost savings through bulk purchasing or long-term contracts. References:
* Lysons, K., & Farrington, B. (2016). Procurement and Supply Chain Management. Pearson.
* CIPS (Chartered Institute of Procurement & Supply) guidelines on vehicle procurement and fleet management.


NEW QUESTION # 73
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