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ISM CPSM Bridge Sample Questions:

1. Which of the following price strategies would one use if they allow the seller to charge an hourly rate for labor plus the cost of materials and allowable expenses?

A) Market demand pricing
B) Time and material contracts
C) Loss leader pricing
D) Market based approach

2. What is an exit strategy supply management decision to determine whether the organization will be liable for the suppliers?

A) Hazardous waste disposition exit strategy.
B) Excess or obsolete inventory exit strategy.
C) Unemployment benefits for employees exit strategy.
D) Accident records exit strategy.

3. The audit process for supply management is an objective examination and a verification of compliance with your organizations standards. Which of the following BEST describes the audit process?

A) All level review of the organization including fiscal, supply management and social responsibilities.
B) Pre-read by the audit team, focused review, exit conference, and development of a process improvement plan.
C) Initial review with management, process mapping of the supply chain, reviewing documentation, exit conference, and communication of a process improvement plan.
D) Gathering necessary data, reviewing documentation, interviewing employees, analysis, and communication of a process improvement plan.

4. Managing an online event or reverse auctions includes traditional sourcing steps as well as procedures unique to the event. Which of the following is not a component of step TWO which is "Generate supplier profiles"?

A) Determine which suppliers could possibly be future suppliers
B) Define the category
C) Determine the value added capabilities of the supplier's
D) Identify qualified suppliers

5. The supply management professional may encounter very complex arrangements of authority. This may be in the form of actual authority, apparent authority, express or implied authority. The type of authority used to describe an authority that is implied by law to enable the agent to carry out the express authority granted by the principal is?

A) Actual authority
B) Apparent authority
C) Implied authority
D) Expressed authority

Solutions: