ISM - High-quality Exam CORe Success

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Quiz 2025 ISM The Best CORe: Exam Supply Management Core Exam Success

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ISM Supply Management Core Exam Sample Questions (Q92-Q97):

NEW QUESTION # 92
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A manager at a large gold mining company is trying to determine how a series of recent events will affect the future of his industry.
The following events occur simultaneously:
Flooding damages several gold mines in a region.
The price of platinum, a substitute for gold, increases.
A new government policy mandates an increased wage rate for mine workers.
What should the manager expect regarding the new equilibrium price and quantity for gold?

A. The equilibrium price increases and equilibrium quantity increases.
B. The equilibrium price increases and the effect on quantity is unknown.
C. The effect on price is unknown, and the equilibrium quantity increases.
D. The equilibrium price increases and equilibrium quantity decreases.

Answer: B

NEW QUESTION # 93
A supply manager Is conducting the following activities:
*Mapping between category codes and category maps
*Normalizing supplier information
*Performing supplier mapping
*Refining mapping with financial systems data
Which of the following is the supply manager engaged in?

A. Spend analysis
B. Cost/price analysis
C. Risk analysis
D. Market analysis

Answer: A

Explanation:
* Mapping Category Codes and Category Maps: This involves organizing spend data into specific categories to better understand spending patterns.
* Normalizing Supplier Information: Ensuring consistency in supplier data to facilitate accurate analysis.
* Performing Supplier Mapping: Linking suppliers to specific categories and understanding their spend impact.
* Refining with Financial Data: Integrating financial data to get a comprehensive view of spend, enabling more informed decision-making.
* Conducting Spend Analysis: These activities are all part of spend analysis, which aims to understand where money is being spent, with whom, and on what terms, to identify cost-saving opportunities and improve procurement efficiency.
References:
* CIPS: "Spend Analysis and Cost Reduction"
* ISM: "Spend Analysis: The Key to Strategic Sourcing"

NEW QUESTION # 94
A firm wants to leverage supply contracts by making maintenance, repair, and operations (MRO) supplies available to all of its subsidiaries. Which of the following is the MOST efficient and cost-effective way to provide product details to potential users?

A. Require suppliers to provide secure ordering portals tailored to specific contracts
B. Conduct train-the-trainer sessions for supply management staff at the subsidiaries
C. Email a list of suppliers' websites to contacts at each subsidiary
D. Create internal online catalogs with ordering instructions and links to suppliers' sites

Answer: D

Explanation:
To leverage supply contracts and make MRO supplies available to all subsidiaries efficiently and cost-effectively:
* Require suppliers to provide secure ordering portals tailored to specific contracts: While secure, this approach places the burden on suppliers and may lead to inconsistencies in user experience.
* Conduct train-the-trainer sessions for supply management staff at the subsidiaries: Effective for training, but not the most efficient way to provide ongoing product details.
* Create internal online catalogs with ordering instructions and links to suppliers' sites: This approach centralizes information, making it easily accessible for all subsidiaries. It ensures consistency in ordering procedures and allows for efficient updates.
* Email a list of suppliers' websites to contacts at each subsidiary: Simple but lacks centralization and can lead to outdated or inconsistent information.
Therefore, the most efficient and cost-effective way is to create internal online catalogs with ordering instructions and links to suppliers' sites.
References:
* Supply chain management best practices on internal cataloging.
* Institute for Supply Management (ISM) guidelines on centralized procurement systems.

NEW QUESTION # 95
An individual is considering whether to fly or take the train for an upcoming trip. This individual works remotely for $10/hour, but will not be able to work while on the airplane or train. The flight would take two hours and cost $125; the train would take eight hours and cost $50. What are the respective total economic costs of taking the flight and taking the train?

A. $75 and $175
B. $125 and $50
C. $145 and $130
D. $20 and $80

Answer: C

NEW QUESTION # 96
A buyer for ABC, Inc. meets with a sales representative from XYZ Company to discuss the purchase of a product. The sales representative provides documentation to the buyer that the product will meet or exceed the specifications required by ABC. Based on thi information, the buyer places an order with XYZ.
However, upon inspection of the received product, the buyer learns that it does not meet ABC's specifications and cannot be used for the intended purpose. Which of the following is TRUE in this situation?

A. ABC's design team should change the specifications to allow the product to be used and avoid further delay.
B. ABC should return the goods for a full refund because the promise made by the seller created an express warranty.
C. ABC should sell the product to a third party and use the funds to procure items that meet the required specifications.
D. ABC can do nothing, as the salesperson's claim was an opinion and did not create a warranty.

Answer: B

NEW QUESTION # 97
......

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ISM - High-quality Exam CORe Success

Quiz 2025 ISM The Best CORe: Exam Supply Management Core Exam Success

ISM Supply Management Core Exam Sample Questions (Q92-Q97):

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