ISM Supply Management Core : CORe valid dump

A supply management department is asked to obtain lower prices from suppliers. Through its efforts, the department manages to achieve a 5% reduction in indirect spend categories. However, some stakeholders request more items, keeping total expenditures about the same despite lower per-item costs.
Which of the following will be the BEST long-term approach for supply management to improve upon this situation?

• A. Report the problem to top management, citing the departments with the poorest records
• B. Work with leadership to implement a more effective demand management program
• C. Refrain from processing orders for additional items unless there is a compelling justification
• D. Accept additional orders only if the requesting department has at least a 5% overall reduction in spend

RST, Inc. is a global electronics manufacturer which has purchased electronic assemblies from Supplier X for many years. RST has experienced occasional quality problems with these assemblies, and these problems have caused significant delays in production. Because RST's senior management regards Supplier X as a loyal supplier, the firm has not looked to replace it. Nevertheless, RST's supply manager feels that Supplier X has become complacent in Its relationship with RST and is behind the market in important technological advances.
Which of the following should the supply manager do FIRST to convince RST's senior management to re-source the electronic assemblies?

• A. Present a global business case to senior management, as the market for the assemblies is international
• B. Begin the seven-step strategic sourcing process
• C. Perform an on-site quality assessment of Supplier X
• D. Present a value analysis of Supplier X to both RST's and Supplier X's senior management

MNO, Inc. purchases benchmarking data services from Supplier X, which is the sole source for data relevant to MNO's industry. In recent months, Supplier X's pricing has increased and its technical support has worsened. MNO's supply manager is preparing to negotiate for contract renewal with Supplier X and needs to resolve these concerns. Which of the following is the BEST course action for the supply manager to take before conducting negotiations?

• A. Revise the Service Level Agreement (SLA) with Supplier X, with penalties for non-performance
• B. Develop win-win scenarios to add long-term value in a collaborative relationship
• C. Compare Supplier X's rates against similar services to establish reasonable costs
• D. Determine whether data can be collected from other sources, to bring the services in-house

A supply manager for UVW, Inc. Is considering the use of lead division buying. Which of the following factors is MOST supportive of such efforts?

• A. Several divisions use consistent quantities of the same item.
• B. There is ongoing involvement of the engineering department.
• C. Each division needs products tailored to its own production.
• D. Deliveries must be coordinated with production schedules.

A buying organization requires suppliers to maintain an on-time delivery rate greater than 90%. Based on the data below, which of the following can be concluded regarding the delivery performance of these three suppliers?
Supplier A ScoreSupplier B ScoreSupplier C Score
Total Shipments10002000500
Late Shipments6012551

• A. All threesuppliers have an on-time delivery rate greater than 90%.
• B. SupplierBhas failed to meettheorganization'srequirements.
• C. SupplierAhas failed to meettheorganization'srequirements.
• D. SupplierChas failed to meettheorganization'srequirements.