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ISM Supply Management Core Exam Sample Questions (Q131-Q136):
NEW QUESTION # 131
A company provided the following information on its financial statements for 2013: What is the company's accounts receivable turnover ratio for 2013?
Answer: A
NEW QUESTION # 132
The media discovers that an automobile manufacturer has been secretly polluting the rivers near its plants. After this discovery, the government imposes a punitive fee on the company, and a group of consumers begins to boycott the manufacturer. What will be the total effect of these simultaneous events?
Answer: C
NEW QUESTION # 133
A firm has over 1000 active suppliers within its database. The company wants to begin the practice of regular business reviews with suppliers. Of the following, the BEST method for conducting reviews is to
Answer: D
Explanation:
The best method for conducting regular business reviews with suppliers is to choose suppliers based on the necessity of their product to operations. Prioritizing suppliers who provide critical products ensures that the most important aspects of the supply chain are managed effectively. This approach helps in maintaining the continuity and efficiency of operations and allows the firm to address potential issues with key suppliers promptly.
References
* ISM (Institute for Supply Management). Supplier Relationship Management Best Practices.
* CIPS (Chartered Institute of Procurement & Supply). Conducting Effective Supplier Reviews.
NEW QUESTION # 134
A state university is looking to purchase equipment to scan books and manuscripts into a digital format.
Several variations of this equipment exist in the marketplace, and the university has not decided which format is best for their needs. There is also a possibility that the cost for additional storage requirements will be shared with the state. Given this situation, which of the following is the FIRST course of action the university should take?
Answer: A
Explanation:
* Identification of Need: The university needs to purchase equipment to digitize books and manuscripts.
* Market Variations: Several variations of the required equipment exist in the marketplace, indicating a need to understand the different options available.
* Undecided Format: The university has not decided which format is best, necessitating information gathering on different formats and their benefits.
* Cost Sharing Possibility: There is a possibility that the cost for additional storage will be shared with the state, adding another layer of complexity.
* First Course of Action: In such situations, the most appropriate first step is to gather comprehensive information on the available options. An RFI is a tool designed to collect information from suppliers about their products and services. It helps the university understand what is available in the market, the capabilities of different suppliers, and the possible costs and benefits of various options.
* Next Steps: After the RFI, the university can better determine their specific needs and proceed with
* more targeted procurement processes such as an RFP.
References
* ISM Glossary of Key Supply Management Terms
* CIPS Procurement and Supply Cycle
NEW QUESTION # 135
A sourcing manager is negotiating a contract with a human resources supplier that has access to employee data, including social security numbers. The supplier proposes an annual cap of $10,000 on overall liability. In this situation, which of the following is the MOST important stakeholder for the sourcing manager to consult in regard to this supplier?
Answer: D
NEW QUESTION # 136
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