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ISM CORe Exam Syllabus Topics:

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

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ISM Supply Management Core Exam Sample Questions (Q120-Q125):

NEW QUESTION # 120
DEF, Inc. is a multinational oil company expanding into a new geographic region. The firm's policy is to purchase locally for its operations whenever possible. Thus, DEF needs to find sources of materials, basic equipment, and standard bulk items within the new region. Given this situation, which of the following is the BEST way for DEF to proceed?

Answer: A


NEW QUESTION # 121
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 # 122
A company purchases a high-value product In an industry known for slow turnover on receivables. This creates issues with cash flow and presents a special challenge to supply management. Given this situation, which of the following should this firm negotiate to BEST avoid difficulties in the buyer/supplier relationship?

Answer: D

Explanation:
* Industry Challenge: Slow turnover on receivables affects cash flow, presenting a challenge in maintaining a healthy buyer/supplier relationship.
* Extended NET Terms: Negotiating extended payment terms can provide the buyer with additional time to manage cash flow effectively without straining the relationship with the supplier.
* Cash Flow Management: Extended terms help align payment schedules with cash inflows, reducing the financial pressure on the buyer.
* Mutual Benefit: This approach is mutually beneficial as it provides the supplier with a predictable payment schedule while offering the buyer improved cash flow flexibility.
References
* ISM. (n.d.). Managing Payment Terms in Supply Chain.
* CIPS. (n.d.). Negotiating Payment Terms and Conditions.


NEW QUESTION # 123
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:

Answer: B


NEW QUESTION # 124
The supply manager for a community college is contacted by the college's chief financial officer (CFO), who describes a meeting with Supplier X, a food service contractor interested in providing cafeteria services. The supply manager reminds the CFO that services must be procured via a competitive request for proposal (RFP), with solicitations issued only to suppliers who have completed a pre-qualification review.
The procurement process goes forward, and a contract is awarded to another bidder. Supplier X then sues the college. It claims that it never received an RFP, even though the CFO promised it an opportunity to submit a proposal. Which of the following aspects of the CFO's conversation with Supplier X is MOST likely to be an issue?

Answer: A

Explanation:
The issue of apparent authority is most likely to be a problem in this situation. Apparent authority arises when a third party (Supplier X) reasonably believes that an individual (the CFO) has the authority to act on behalf of the organization (the college) based on the individual's actions or statements. The CFO's conversation with Supplier X may have led the supplier to believe that they would have an opportunity to submit a proposal, even though the proper procurement process was not followed. This misunderstanding can result in legal disputes and claims of unfair practices.
References:
* ISM (Institute for Supply Management). (2020). ISM Glossary of Key Supply Management Terms.
* CIPS (Chartered Institute of Procurement and Supply). (2021). Procurement and Supply Chain Management.


NEW QUESTION # 125
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