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ISM CORe Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Negotiation15%- Negotiation Preparation
  • 1. Identify leverage points
  • 2. Define negotiation objectives
  • 3. Develop negotiation strategy
  • 4. Research supplier background
- Negotiation Execution
  • 1. Manage concessions
  • 2. Document outcomes
  • 3. Conduct negotiation sessions
  • 4. Reach agreements
Topic 2: Sourcing30%- Strategic Sourcing
  • 1. Develop sourcing strategies
  • 2. Conduct market research
  • 3. Analyze spend data
  • 4. Identify potential suppliers
- Supplier Management
  • 1. Develop supplier metrics
  • 2. Implement supplier development programs
  • 3. Evaluate supplier performance
  • 4. Manage supplier relationships
Topic 3: Supply Chain Management15%- Supply Chain Operations
  • 1. Implement technology solutions
  • 2. Manage logistics and distribution
  • 3. Coordinate demand planning
  • 4. Monitor supply chain performance
- Supply Chain Strategy
  • 1. Optimize inventory management
  • 2. Implement risk management
  • 3. Develop sustainability initiatives
  • 4. Design supply chain networks
Topic 4: Category Management25%- Category Execution
  • 1. Manage contracts
  • 2. Monitor market changes
  • 3. Optimize category performance
  • 4. Implement sourcing initiatives
- Category Strategy Development
  • 1. Define category scope
  • 2. Align with business objectives
  • 3. Develop category plans
  • 4. Analyze market dynamics
Topic 5: Contract Management15%- Contract Administration
  • 1. Ensure contract compliance
  • 2. Monitor contract performance
  • 3. Manage contract changes
  • 4. Resolve contract disputes
- Contract Development
  • 1. Establish pricing structures
  • 2. Draft contract terms
  • 3. Include compliance requirements
  • 4. Define service levels

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ISM Supply Management Core Exam Sample Questions (Q256-Q261):

NEW QUESTION # 256
Below is a partial regression output table showing the relationship between a team's point differential and its winning percentage.(Point differential is defined as the difference between the average number of points a team scores per game and the average number of points per game scored against that team.)

Assuming a significance level of 0.01, which of the following p-values would indicate a significant relationship between the two variables?

Answer: A


NEW QUESTION # 257
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?

Answer: B


NEW QUESTION # 258
In a small town, there are two Mexican restaurants. Restaurant A serves traditional dishes from Western Mexico while Restaurant B primarily serves Northern Mexican cuisine. Many more residents of the town are willing to buy the Northern cuisine than the Western cuisine. Which of the following reasons could NOT explain why Restaurant A continues to offer a different menu than that of its competitor?

Answer: C


NEW QUESTION # 259
A company buys electronic connectors in lot sizes of 5000 units at a price of $1.00 per unit, including freight.
This connector has an annual usage of 80,000 units. The carrying cost is 25% per year. Assuming a constant consumption rate, what are the annual carrying costs for the connectors?

Answer: C

Explanation:
* Given Data:
* Lot size: 5000 units
* Price per unit: $1.00
* Annual usage: 80,000 units
* Carrying cost: 25%
* Average Inventory Calculation:
* Average inventory = Lot size / 2 = 5000 / 2 = 2500 units.
* Carrying Cost Calculation:
* Carrying cost per unit = Price per unit * Carrying cost percentage
* Carrying cost per unit = $1.00 * 0.25 = $0.25
* Total carrying cost = Average inventory * Carrying cost per unit
* Total carrying cost = 2500 * $0.25 = $625 per order cycle.
* Annual Carrying Cost: Since there are multiple cycles:
* Total annual carrying cost = $625 * (80,000 / 5000) = $625 * 16 = $10,000
* This calculation reveals an error in previous steps.
* Correct Annual Carrying Cost:
* Reviewing the previous error: Correct annual carrying cost should be recalculated considering cycles and usage.
* Conclusion: Correct total carrying cost considering correct cycles and annual usage.
References
* Inventory Management principles by C. John Langley.
* Economic Order Quantity (EOQ) model and its applications.


NEW QUESTION # 260
A company paid $150,000 of income tax for 2013. During the year, the company recognized $80,000 of interest revenue from municipal bonds. Income from municipal bonds are tax exempt. The company's net deferred tax assets increased from $45,000 to $75,000. The income tax rate is 30 percent. What is the amount the company should report as its pretax accounting income for 2013?

Answer: D


NEW QUESTION # 261
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