ISM Supply Management Core - CORe Exam Practice Test

A supply manager Issues a Request for Information (RFI) for a customer tech support center. Limited competition exists among domestic suppliers, and the supply manager needs to obtain favorable pricing to reduce current costs. Given this situation, which of the following Is the BEST course of action for the supply manager to take?

A team from RST, Inc. is conducting a negotiation session with a supplier. During the session, RST's lead negotiator perceives that various members of the supplier's team are being evasive on the issue of the supplier's capacity to handle the project. However, there is no apparent sign that the other members of RST's team share this perception. Given this situation, which of the following is the BEST course of action for the lead negotiator to take?

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?

According to the Kraljic matrix, how should a product with high business impact and low supply market complexity be categorized?

A supply management department is looking to standardize purchases across the entire organization and leverage spend with fewer suppliers. Which of the following will be MOST useful for determining historical baseline costs?

DEF, Inc. is a medium-sized manufacturer in the precious metals industry. Continued price increases in precious metals have put a strain on the financial resources of suppliers, and while some have closed their businesses, others have converted to lower cost metals. DEF's supply manager is concerned not only about the evaporation of the specialty supply base but also that marketing efforts into new online markets are providing new growth and renewed demand for long-established product lines. The supply manager determines that although little precious raw material Is used internally in the organization, the combined volumes from component manufacturers are large and growing.
Which of the following should the supply manager employ to gain value under these conditions?

UVW, Inc. wants to expand its production of several products to meet anticipated demand. UVW's supply management team works with other departments to find the best ways to maximize output at minimum cost.
The team determines that production of Item A can be increased from 100 to 120 units per day using existing facilities. However, the firm's goal is at least 130 units per day. Which of the following factors will be MOST important In deciding whether to proceed with the higher production goals?

One of TUV Company's largest suppliers has been performing poorly, and the quality of its services does not meet the needs of a particular stakeholder. Which of the following is the BEST way for TUV's supply manager to evaluate how to establish service level agreements (SLAs) to improve the performance of this supplier?

During a request for proposal (RFP) debriefing, a supplier provides clarification on some of the answers in the RFP that, had they been included, would have increased the supplier's score. In response to this, which of the following is the BEST course of action for the supply manager to take?

The supply manager for TUV Inc. is planning for negotiations with a supplier of software critical to TUV's order processing system. The supplier informs the supply manager that support for this software will soon be dropped. Upgrading to a newer version will be cost prohibitive for TUV. Given this situation, which of the following is the BEST course of action for TUV's supply manager to take prior to negotiations?