2026 ISM CORe: Accurate Supply Management Core Exam Exam Reference

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| Section | Weight | Objectives |
|---|
| Sourcing | 30% | - Supplier Management
- 1. Manage supplier relationships
- 2. Evaluate supplier performance
- 3. Develop supplier metrics
- 4. Implement supplier development programs
- Strategic Sourcing
- 1. Develop sourcing strategies
- 2. Analyze spend data
- 3. Conduct market research
- 4. Identify potential suppliers
|
| Negotiation | 15% | - Negotiation Preparation
- 1. Define negotiation objectives
- 2. Identify leverage points
- 3. Research supplier background
- 4. Develop negotiation strategy
- Negotiation Execution
- 1. Document outcomes
- 2. Conduct negotiation sessions
- 3. Reach agreements
- 4. Manage concessions
|
| Contract Management | 15% | - Contract Administration
- 1. Manage contract changes
- 2. Monitor contract performance
- 3. Resolve contract disputes
- 4. Ensure contract compliance
- Contract Development
- 1. Define service levels
- 2. Establish pricing structures
- 3. Include compliance requirements
- 4. Draft contract terms
|
| Category Management | 25% | - Category Execution
- 1. Manage contracts
- 2. Monitor market changes
- 3. Implement sourcing initiatives
- 4. Optimize category performance
- Category Strategy Development
- 1. Analyze market dynamics
- 2. Define category scope
- 3. Develop category plans
- 4. Align with business objectives
|
| Supply Chain Management | 15% | - Supply Chain Strategy
- 1. Design supply chain networks
- 2. Develop sustainability initiatives
- 3. Optimize inventory management
- 4. Implement risk management
- Supply Chain Operations
- 1. Manage logistics and distribution
- 2. Implement technology solutions
- 3. Monitor supply chain performance
- 4. Coordinate demand planning
|
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CORe Exam Sample | CORe Interactive Practice Exam
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ISM Supply Management Core Exam Sample Questions (Q97-Q102):
NEW QUESTION # 97
According to the Sarbanes-Oxley Act, to whom must an audit committee for a publicly traded company answer?
- A. The Securities and Exchange Commission
- B. The firm's CEO
- C. The Internal Revenue Service
- D. The company's shareholders
Answer: D
Explanation:
The audit committee for a publicly traded company must answer to the company's shareholders. The Sarbanes-Oxley Act mandates significant corporate governance reforms regarding audit committees, making them responsible for the appointment, compensation, and oversight of the issuer's auditor12. This aligns with the objective of ensuring that the audit committee acts in the best interest of the shareholders, maintaining transparency and accountability in financial reporting.
NEW QUESTION # 98
A company is considering a project to develop a nascent technology to harness energy from ocean waves but wants to determine its economic viability. This 10-year project will cost the company $10 million in research and development costs and $25 million to build infrastructure. Each megawatt of energy costs $60 to produce, but the government offers a subsidy of $5 permegawatt. The price per megawatt of energy will be $56 for the next five years, and the company expects to produce 1 million megawatts per year. Ignoring the time value of money (i.e. assuming cash flows across different years are directly comparable), if costs, output, and subsidies remain constant, what will the market price of a megawatt of energy need to be in years six through ten to make this project economically viable?
Answer: C
NEW QUESTION # 99
In determining free cash flows, how is the change in net working capital calculated?
- A. Current Assets minus Current Liabilities (year projected) - Current Assets minus Current Liabilities (previous year)
- B. Ending balance of cash (previous year) - Ending balance of cash (year projected)
- C. Receivables minus Payables (year projected) - Receivables minus Payables (previous year)
- D. Current Assets (previous year) - Current Assets (year projected)
Answer: A
NEW QUESTION # 100
The equilibrium quantity of sugar decreases, and the equilibrium price increases. Which of the following events would definitely result in these changes in the market for sugar?
- A. A new health report emphasizes the risks of sugar consumption, and at the same time an earthquake occurs that damages many sugar processing facilities.
- B. An earthquake occurs that damages many sugar processing facilities.
- C. A new and more efficient harvesting method is developed for sugar.
- D. A producer of artificial sweeteners goes out of business, and at the same time an earthquake occurs that damages many sugar processing facilities.
Answer: B
NEW QUESTION # 101
A company has recently moved to outsourcing and low-cost country sourcing for two key product lines, and the supply manager has seen some of the cost savings erode as the supply chain and related distances increase.
However, the supply manager is certain that by working with the new supply base, many of the savings previously earned could be regained, especially since raw material lead times have actually decreased in the marketplace, and cycle time in most offshore assembly plants has been reduced by 35%. Which of the following should be employed?
- A. Supplier mentorship
- B. Multi-tier purchase agreements
- C. Supplier alliance development
- D. Value chain analysis
Answer: C
Explanation:
The supply manager aims to regain the lost cost savings by collaborating closely with the new supply base.
Supplier alliance development is a strategic approach that involves working together with suppliers to improve processes, reduce costs, and enhance overall performance. Given the reduction in raw material lead times and offshore assembly cycle times, a strong alliance with suppliers can streamline the supply chain, optimize efficiencies, and restore cost savings.
References
* Strategic Supply Chain Management by Cohen and Roussel.
* Best practices in supplier relationship management and alliance development.
NEW QUESTION # 102
......
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