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ISM Supply Management Core Exam Sample Questions (Q47-Q52):

NEW QUESTION # 47
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. Determine whether data can be collected from other sources, to bring the services in-house
B. Develop win-win scenarios to add long-term value in a collaborative relationship
C. Revise the Service Level Agreement (SLA) with Supplier X, with penalties for non-performance
D. Compare Supplier X's rates against similar services to establish reasonable costs

Answer: B

Explanation:
* Identify the Issues: The supply manager should first clearly outline the specific issues with Supplier X, such as the price increases and declining technical support.
* Develop Win-Win Scenarios: Before entering negotiations, it is essential to develop scenarios that can create mutual benefits for both MNO, Inc. and Supplier X. This approach fosters a collaborative relationship rather than an adversarial one.
* Long-term Value: By focusing on long-term value, the supply manager can address the current issues and also set a precedent for future interactions. This may involve proposing solutions like better support mechanisms or more favorable pricing structures in exchange for commitments from MNO.
* Collaborative Relationship: Building a collaborative relationship helps in negotiating terms that are beneficial and sustainable for both parties. This includes working together to find efficiencies or improvements that can lead to cost savings or enhanced service levels.
References:
* CIPS: "Guide to Supplier Relationship Management"
* ISM: "Negotiation Strategies for Long-Term Supplier Relationships"

NEW QUESTION # 48
A manufacturing firm creates a steering committee to review a proposal to manufacture a new product. The product is regarded by the firm's sales team as a customer requirement based on "voice of the customer" input.
In the past, this product was seen as a high-risk noncore item, but the situation has now changed enough for the firm to warrant consideration. The firm's supply manager is tasked with developing a sourcing plan for the steering committee. In this situation, which of the following is the NEXT course of action the supply manager should take?

A. Conduct a strengths, weaknesses, opportunities and threats (SWOT) analysis
B. Create a request for information (RFI) and find the best qualified suppliers with which to develop a sourcing plan
C. Conduct market research on the options available for the product discussed
D. Create a scope of work outlining the requirements, and submit it to stakeholders for review and approval

Answer: D

Explanation:
In developing a sourcing plan for a new product, the first logical step for the supply manager is to create a scope of work (SOW). The SOW should detail the specific requirements and expectations for the product, including quality, delivery, performance specifications, and any other pertinent criteria. Once the SOW is prepared, it should be submitted to stakeholders for review and approval. This ensures alignment and buy-in from all relevant parties before proceeding with the procurement process.
References
* The Procurement and Supply Manager's Desk Reference by Fred Sollish and John Semanik
* Project Management Institute (PMI) guidelines

NEW QUESTION # 49
A local tourism board wants the city government to set a maximum price that taxis can charge, in order to make the city more attractive to tourists. What might be a result of this price cap?

A. The quality of taxis will improve.
B. Total welfare (consumer surplus + producer surplus) will increase.
C. Local residents will begin to use taxis more frequently.
D. The number of taxis will decrease.

Answer: D

NEW QUESTION # 50
Consider the following data for four separate machines:
Purchase PriceProjected Annual SavingsEstimated Life (in years)
Machine W$100,000$17,0006
Machine X$112,000$23,0007
Machine Y$143,000$19,0009
Machine Z$150,000$25,0008
Which machine produces the HIGHEST simple return on investment (ROI) over its useful life?

A. W
B. X
C. Z
D. Y

Answer: B

NEW QUESTION # 51
A legal protection that covers an invention, the discovery of a process, or a machine or method of manufacturing, is known as a

A. plant patent
B. copyright
C. utility patent
D. design patent

Answer: C

Explanation:
Legal protections for inventions, processes, or manufacturing methods are categorized into different types of patents:
* Design patents cover new, original, and ornamental designs for an article of manufacture.
* Copyrights protect original works of authorship, such as literature, music, and art.
* Utility patents cover new inventions or discoveries of processes, machines, or methods of manufacturing.
* Plant patents cover new and distinct varieties of plants that are asexually reproduced.
A utility patent is the appropriate legal protection for an invention, the discovery of a process, or a machine or method of manufacturing.
References:
* U.S. Patent and Trademark Office (USPTO) guidelines on patents.
* World Intellectual Property Organization (WIPO) resources on intellectual property rights.

NEW QUESTION # 52
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CORe Real Exams & CORe Reliable Exam Cram

CORe Reliable Exam Cram, CORe Questions Exam

ISM Supply Management Core Exam Sample Questions (Q47-Q52):

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