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100% Pass Quiz 2025 Useful ISM CORe: Pdf Supply Management Core Exam Pass Leader

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ISM Supply Management Core Exam Sample Questions (Q54-Q59):

NEW QUESTION # 54
A supply manager Is assigned to a new product similar to products the firm has developed in the past. Because the stakeholders have not defined all of the product's requirements, not all engineering diagrams have been completed, and the program is behind schedule. The program manager requests all procurement lead times for the project. Which of the following is the BEST way for supply manager to respond in this situation?

A. Conduct regular meetings with the engineering team to expedite the release of the drawings
B. Contract with the suppliers to start manufacturing the parts, as the engineering drawings are not necessary at this point
C. Consult with suppliers for lead time estimates on similar parts used in related products
D. Postpone any action until the engineering drawings are released

Answer: C

Explanation:
* Understanding Lead Times: Lead time is the period between the initiation and completion of a production process.
* Consulting Suppliers: Given that the product is similar to previous products, suppliers would have historical data on lead times for similar parts.
* Accuracy of Estimates: Suppliers can provide more accurate and realistic estimates based on past experience and current production capabilities.
* Action Without Complete Drawings: Consulting suppliers does not require final engineering drawings, allowing procurement processes to begin promptly without delays.
* Minimizing Delays: This approach allows the supply manager to provide the program manager with timely information, helping to keep the project on track despite incomplete engineering diagrams.
References
* Project Management Body of Knowledge (PMBOK), Procurement Management.

NEW QUESTION # 55
With which group of suppliers is It MOST important to conduct regular performance reviews?

A. Standard
B. Commodity
C. Strategic
D. Key

Answer: C

NEW QUESTION # 56
PQR's supply manager signs a contract with Supplier X for delivery of parts totaling $1,250,000 per year for four years. Accompanying the contract is a copy of the organization's signing policy, which states that supply managers have authority to execute contracts up to $1,000,000 per year. Supplier X questions the discrepancy, but is told verbally by the supply manager that the policy has changed, and supply managers now have a
$1,500,000 per year signing limit for up to five years.
Senior management at PQR discovers the supply manager's misstatement and tries to disavow the contract.
This attempt will likely be

A. unsuccessful, because the supply manager's verbal statement represents a binding agreement
B. unsuccessful, as the supply manager's status and statement constitute apparent authority
C. successful, as the supplier should have respected the written signing policy
D. successful, provided the disavowal occurs within three business days of contract signing

Answer: B

NEW QUESTION # 57
A U.S. firm receives several blds for a piece of specialized testing equipment. A supplier from Japan quotes a price of 360,000 Yen. If the current exchange rate is 90 Yen per U.S. Dollar, what will the price be in U.S.
dollars?

A. $3,240
B. $40,000
C. $32,400
D. $4,000

Answer: C

Explanation:
To determine the price in U.S. dollars for the specialized testing equipment quoted at 360,000 Yen with an exchange rate of 90 Yen per U.S. Dollar:
* Understand the exchange rate: 1 USD = 90 Yen.
* Convert the quoted price in Yen to USD: Price in USD=360,000 Yen90 Yen/USD ext{Price in USD} =
rac{360,000 ext{ Yen}}{90 ext{ Yen/USD}}Price in USD=90 Yen/USD360,000 Yen Price in USD=4,000 USD ext{Price in USD} = 4,000 ext{ USD}Price in USD=4,000 USD Thus, the price in U.S. dollars is $4,000.
References:
* Currency conversion principles.
* Current exchange rates from financial news sources.

NEW QUESTION # 58
A supply manager is seeking waterproofing consulting services to be used in the construction of a critical materials warehouse. It is the firm's first time procuring this type of service. Given this situation, the supply manager would be BEST served by

A. subcontracting the work to the general contractor
B. Identifying preferred consultants
C. hiring a staffing agency
D. preparing a flexible scope of work

Answer: B

Explanation:
For a firm procuring waterproofing consulting services for the first time:
* Preparing a flexible scope of work: Flexibility can be useful but may lead to ambiguity and lack of focus.
* Identifying preferred consultants: Researching and identifying consultants with proven expertise ensures the firm selects qualified professionals, especially critical for a first-time procurement.
* Hiring a staffing agency: Typically used for temporary staff rather than specialized consulting services.
* Subcontracting the work to the general contractor: Effective for general construction tasks but might not guarantee specialized waterproofing expertise.
Given the critical nature of the service and the firm's inexperience, the best course of action is to identify preferred consultants with expertise in waterproofing.
References:
* Procurement strategy literature on consulting services.
* Industry best practices for selecting specialized consultants.

NEW QUESTION # 59
......

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