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ISM CORe Exam Syllabus Topics:

Section	Objectives
Procurement and Sourcing	- Contracting and purchasing basics - Supplier selection and evaluation
Operations and Demand Planning	- Demand forecasting fundamentals - Production and operations alignment
Supply Management Fundamentals	- Value creation and supply chain role - Introduction to supply management concepts

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ISM Supply Management Core Exam Sample Questions (Q227-Q232):

NEW QUESTION # 227
An online music streaming company has two subscription options:
1.Listen to unlimited music with five minutes of advertisements for every hour of music.
2.Pay a monthly fee and listen to unlimited music with no ads.
If a potential customer wants to subscribe to the company but is indifferent between options 1 and 2, the customer's willingness to pay (WTP) is:

A. Positive for music and unknown for advertising.
B. 0 for music and negative for advertising.
C. Positive for music and positive for advertising.
D. Positive for music and negative for advertising.

Answer: D

NEW QUESTION # 228
The following regression equation shows the relationship between the cost of homeowner's insurance and two variables: the home's distance from the waterfront (in miles) and the amount spent on the home's security system (in dollars).
Cost of Homeowner's Insurance = 3,000 - 300*(distance from waterfront) - 10*(amount spent on security systems)
Which of the statements below accurately describes this relationship?

A. For each additional mile a house is from the waterfront, the cost of homeowner's insurance decreases by $300 on average.
B. As a house's distance from the waterfront increases by 300 miles, the amount spent on security systems decreases by $10 on average.
C. Provided the distance from the waterfront remains constant, for each additional dollar spent on a security system, the cost of homeowner's insurance increases by $10 on average.
D. Provided the amount spent on security systems remains constant, for each additional mile a house is from the waterfront, the cost of homeowner's insurance decreases by $300 on average.

Answer: D

NEW QUESTION # 229
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. Poll external stakeholders for input
B. Create a steering committee
C. Select the best source of supply
D. Perform cost regression analysis (CRA)

Answer: B

NEW QUESTION # 230
A U.S. firm receives several blds for a piece of specialized testing equipment. A supplier from Japan quotes a price of 360,000 Yen. If the current exchange rate is 90 Yen per U.S. Dollar, what will the price be in U.S.
dollars?

A. $32,400
B. $4,000
C. $3,240
D. $40,000

Answer: B

NEW QUESTION # 231
Exhibit:

A recent graduate is interested in investing in a stock. This individual is particularly interested in retail companies and has been following two companies closely for the past year. In order to decide which stock to invest in, this individual decides to compare monthly returns for both companies over the past year. A table of descriptive statistics is given below. What can be said about Company A regarding risk and average returns in relation to Company B?

A. Company A has lower average monthly returns and is relatively more risky than Company B.
B. Company A has higher average monthly returns and is relatively more risky than Company B.
C. Company A has higher average monthly returns and is relatively less risky than Company
D. Company A has lower average monthly returns and is relatively less risky than Company B.

Answer: C

NEW QUESTION # 232
......

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