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ISM Supply Management Core Exam Sample Questions (Q242-Q247):

NEW QUESTION # 242
In determining Earnings before Interest and Taxes (EBIT), an analyst needs to make what adjustments to the net income amount with regards to income statement items? (Select all that apply.)

Answer: D,E


NEW QUESTION # 243
In order to predict an employee's probability of success at work, a company requires employees to complete a test that measures Intelligence Quotient (IQ) and Emotional Intelligence Quotient (EQ). A new manager at the company believes that the probability of being successful at work is closely related to an employee's Reputation Quotient (RQ).

Based on the two regressions outputs below, does adding the RQ component help forecast the probability of being successful at work?

Answer: B


NEW QUESTION # 244
Questions pertaining to standardizing products, reducing the number of suppliers, and combining volumes to attain better pricing are BEST addressed by which of the following?

Answer: B


NEW QUESTION # 245
A supply manager for an electronics distributor is asked to buy new routers for the company's wireless network. The supply manager is provided with a detailed scope of work and a list of potential bidders.
However, the firm is also interested in investigating alternative solutions available on the market. The original equipment was purchased over 5 years ago and the budget is unknown, but it is roughly estimated at $250,000.
Given these circumstances, the MOST appropriate approach for the supply manager would be to issue which of the following?

Answer: A

Explanation:
Given the circumstances, issuing a Request for Information (RFI) is the most appropriate approach. An RFI allows the supply manager to gather comprehensive information about alternative solutions available in the market. This is particularly useful since the original equipment was purchased over five years ago, and there might be new technologies and solutions that better meet the company's needs. An RFI helps in understanding the capabilities of different suppliers and the latest products before proceeding to a more detailed Request for Proposal (RFP) or Request for Quote (RFQ).
References
* ISM (Institute for Supply Management). Effective Use of RFIs in the Procurement Process.
* CIPS (Chartered Institute of Procurement & Supply). Sourcing and Tendering Procedures.


NEW QUESTION # 246
EFG, Inc. is conducting a sourcing activity to identify a provider of operational software. Both large and small consulting firms are invited to bid. Given that the supplier's financial stability will be an important element in the selection process, which of the following is the BEST course of action for EFG to take?

Answer: A

Explanation:
The BEST course of action for EFG, Inc. to take in assessing the financial stability of potential suppliers for operational software is A. Obtain Dun & Bradstreet reports for the potential suppliers and review them for financial vulnerabilities. Dun & Bradstreet reports provide comprehensive insights into a company's financial health, including credit scores, financial stability, and potential risks1. This information is crucial for making informed decisions during the supplier selection process.


NEW QUESTION # 247
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