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ISM Supply Management Core Exam Sample Questions (Q224-Q229):

NEW QUESTION # 224

A supply manager is trying to leverage spend on travel and meeting services for a series of conferences to be held at various locations. The specifics of the conferences will vary according to location and cultural considerations. The organization seeks the best solution to help the conferences succeed.

In this situation, which of the following will be MOST appropriate?

A. Request for Information (RFI)
B. Invitation for Bid (IFB)
C. Request for Proposal (RFP)
D. Non-competitive negotiations

Answer: C

Explanation:

The MOST appropriate action for a supply manager trying to leverage spend on travel and meeting services for a series of conferences with varying specifics is C. Request for Proposal (RFP). An RFP allows the organization to outline its specific needs and requirements for the conferences, including the different locations and cultural considerations, and invites potential suppliers to propose solutions that will meet these needs12. This process enables the organization to evaluate different options and select the best solution to ensure the success of the conferences.

NEW QUESTION # 225

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?

A. Category strategy
B. Category action plan
C. Spend analysis
D. ERP system

Answer: A

Explanation:

A category strategy involves analyzing and managing specific categories of products or services to achieve better pricing, quality, and supplier relationships. By standardizing products, reducing the number of suppliers, and combining volumes, the company can leverage its purchasing power to negotiate better terms and conditions. This approach is comprehensive and strategic, focusing on optimizing procurement and supply chain management for specific categories.

References

* CIPS (Chartered Institute of Procurement & Supply). Category Management in Procurement.

* ISM (Institute for Supply Management). Strategic Sourcing and Category Management.

NEW QUESTION # 226

When developing a sourcing strategy, which of the following is the BEST source of data on the spend profile of a category?

A. The Internet
B. A sales representative from the supplier
C. An internal stakeholder
D. Information from an internal database

Answer: D

Explanation:

* Spend Profile Analysis: This involves examining how much money is being spent, on what, and with whom.

* Internal Database: The company's internal database will have historical data on past expenditures, contracts, purchase orders, and supplier performance.

* Comprehensive Data: This data is likely to be accurate, detailed, and tailored to the company's specific context.

* Internal Stakeholders: While they can provide insights, their information may not be as comprehensive

* or reliable as the data from an internal database.

* External Sources: External sources like sales representatives or the internet may not have access to all necessary internal details. References

* CIPS (Chartered Institute of Procurement & Supply) guidelines on spend analysis.

NEW QUESTION # 227

A manager learns that the government is planning to add an excise tax on the product the company sells. After researching, the manager expects that total expenditures for the good will rise. Of the following goods, which does the company MOST likely sell?

A. Milk
B. Ice cream
C. Leather handbags
D. Raspberries

Answer: A

NEW QUESTION # 228

As of Dec. 31, 2013, a company had current assets of $600,000 and current liabilities of

$300,000. Sales of the company are expected to increase by 10 percent for each of the next two years. If all current asset and current liability accounts increase proportionately with sales, what would be the projected current ratio of the company on Dec. 31, 2015?

A. 1.65
B. 2.42
C. 2.00
D. 2.20

Answer: C

NEW QUESTION # 229

......

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ISM CORe Exam | CORe Exam Questions Fee - Valuable Free Pdf Guide for your CORe Studying

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ISM Supply Management Core Exam Sample Questions (Q224-Q229):

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