EXAM CORE OBJECTIVES PDF, NEW CORE EXAM REVIEW

Exam CORe Objectives Pdf, New CORe Exam Review

Exam CORe Objectives Pdf, New CORe Exam Review

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ISM Supply Management Core Exam Sample Questions (Q225-Q230):

NEW QUESTION # 225
A bottleneck supplier consistently poses a risk of shutting down a company's production lines due to delivery issues. Which of the following is the BEST long-term solution to this problem?

  • A. Conduct daily meetings with the supplier to manage its production schedule
  • B. Impose financial penalties on the supplier each time the firm is negatively impacted by overdue parts
  • C. Pay expediting fees to get the parts from the supplier delivered sooner
  • D. Qualify more suppliers who can deliver the same product

Answer: D

Explanation:
* Identify the Problem: The supplier is causing production shutdowns due to delivery issues, indicating dependency on a single source for critical parts.
* Evaluate Solutions:
* Daily Meetings: Managing the supplier's production schedule closely may help in the short term but doesn't address the root cause or reduce dependency.
* Expediting Fees: Paying for expedited delivery increases costs and is not sustainable.
* Financial Penalties: Imposing penalties can strain relationships and doesn't solve the supply risk.
* Qualify More Suppliers: By identifying and qualifying additional suppliers, the company can reduce dependency on a single supplier, ensuring continuity of supply and mitigating risk.
* Implement the Best Solution: Qualifying more suppliers is a strategic long-term solution that
* diversifies the supply base, improves resilience, and provides alternatives in case of issues with the primary supplier. References:
* Supply Chain Risk Management Principles
* Supplier Relationship Management Practices
* Best Practices in Sourcing and Procurement


NEW QUESTION # 226
Company B sold a service contract that covers a two-year period for $10,000. The service period commenced on July 1, Year 1. Service revenue is recognized evenly throughout the contract period. What amount should Company B report as deferred revenue from this service contract on its balance sheet on December 31, Year 1?

  • A. $10,000
  • B. $5,000
  • C. $2,500
  • D. $7,500

Answer: D


NEW QUESTION # 227
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. Identify opportunities to outsource non-core business functions
  • B. Conduct a spend analysis on strategic items
  • C. Develop and implement an organization-wide strategic sourcing plan
  • D. Develop better e-procurement processes

Answer: A

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 # 228
A supply manager is working with multiple management layers to create a procurement policy. Which of the following should the supply manager do FIRST in order to ensure that this policy is successfully adopted by the organization?

  • A. Verify that senior management approves and distributes the policy to the organization
  • B. Host a meeting with key external suppliers to understand engagement for policy adoption
  • C. Engage business unit sponsors to ensure adoption throughout the organization
  • D. Host a meeting with key internal stakeholders to review the proposed policy

Answer: D

Explanation:
* Initial Steps in Policy Creation: The supply manager needs to ensure the policy is successfully adopted across the organization.
* Engaging Internal Stakeholders: Hosting a meeting with key internal stakeholders is the first step to gather input, address concerns, and ensure the policy aligns with organizational needs.
* Stakeholder Buy-in: This approach helps in gaining the support and buy-in from those who will be directly affected by the policy, making its implementation smoother.
* Policy Review and Feedback: Reviewing the proposed policy with internal stakeholders allows for adjustments based on practical insights and encourages a sense of ownership among stakeholders.
References
* CIPS. (n.d.). How to Develop and Implement a Procurement Policy.
* Supply Chain Management Review. (2017). Effective Procurement Policy Development and Implementation.


NEW QUESTION # 229
Company A is projecting a 10 percent increase in revenue for the next quarter with no significant changes to their operations. Which of the following accounting elements is the LEAST likely to mirror that increase?

  • A. Inventory
  • B. Capital expenditures
  • C. Cost of goods sold
  • D. Accounts receivable

Answer: B


NEW QUESTION # 230
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