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ISM Supply Management Core Exam Sample Questions (Q166-Q171):

NEW QUESTION # 166
A supply manager is planning to conduct negotiations with three potential suppliers, one of which will be selected to provide components for a new product line. A number of internal stakeholders have asked to participate in the negotiations. However, most of the stakeholders have not been involved with the sourcing process up to this point. In this situation, which of the following would be the BEST approach for the supply manager to take?

A. Ask the stakeholders' managers to decide who should participate in the negotiations and who should not
B. Permit all interested stakeholders to participate in the negotiations
C. Limit the negotiations to a few persons who can add feedback at designated points in the negotiation
D. Refuse to allow any of the stakeholders to participate in the negotiations

Answer: C

Explanation:
Involving too many stakeholders who have not been part of the sourcing process can complicate and prolong negotiations. The best approach is to include a limited number of key stakeholders who have relevant expertise and can provide valuable feedback at specific points in the negotiation. This ensures that the negotiation process remains efficient and focused while incorporating essential input from the most knowledgeable participants. References:
* "Negotiation for Purchasing Professionals" by Jonathan O'Brien
* "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl

NEW QUESTION # 167
Which of the following Is the BEST way to address a supplier's service performance and product quality during an annual business review?

A. A report on actual spend in comparison with original projections
B. A scorecard based on internal surveys
C. An industry report on market conditions
D. A site visit to verify supplier capabilities

Answer: B

NEW QUESTION # 168
A corporation acquires a startup company, with the objective of branching out into a new product line. The firm's procurement team needs to enlarge the supply base in order to meet the new production requirements.
Which of the following is the BEST way for the team to ensure suppliers are aligned with organizational goals?

A. Compare the firm's vision and mission to potential suppliers' capabilities
B. Contact current suppliers to determine their maximum production capacity at the necessary quality levels
C. Conduct market research to Identify characteristics needed by potential suppliers
D. Facilitate meetings between internal stakeholders and external stakeholders

Answer: C

NEW QUESTION # 169
The chief executive officer (CEO) of a candy company directs the firm to source, produce and market a line of organic clothing. The firm's internal stakeholders are not in agreement with the CEO. In this situation, which of the following courses of action should supply management take?

A. Perform cost regression analysis (CRA)
B. Poll external stakeholders for input
C. Create a steering committee
D. Select the best source of supply

Answer: C

Explanation:
In a situation where internal stakeholders are not in agreement with the CEO's directive, creating a steering committee is the best course of action for supply management. This committee can facilitate discussion, ensure all perspectives are considered, and guide the project's direction in a structured manner. Polling external stakeholders, selecting the best source of supply, and performing cost regression analysis are useful actions but do not address the need for internal alignment and strategic guidance. References: Change management principles, stakeholder management strategies, project management frameworks.

NEW QUESTION # 170
A company's Balance Sheet for the year ended Dec. 31, 2013 is as follows:

(In millions)
The company is MOST likely in which of the following industries?

A. Retailing
B. Civil aviation
C. Pharmaceutical
D. Commercial banking

Answer: D

NEW QUESTION # 171
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