2024-2025 CPSM EXAM 2 LATEST ACTUAL EXAM
WITH 150 COMPLETE QUESTIONS AND
CORRECT VERIFIED ANSWERS |ALREADY
GRADED A+|2024 CERTIFIED PROFESSIONAL
IN SUPPLY MANAGEMENT (NEW!!)
1. A supply management organization partners with another department to
determine the feasibility of marketing a new product. To aid in decision-making,
the supply management organization should employ which of the following?
(A) Decision tree
(B) Pareto analysis
(C) Supplier forecast
(D) SWOT analysis - ANSWER-D
2. A supply manager is tasked with acquiring training services for a group of
engineers who will be part of specialized sourcing team charged with driving an
aggressive cost-reduction program. Which of the following methods would be
MOST appropriate for the supply manager to employ m identifying appropriate
training solutions?
(A) SWOT analysis
(B) Industry benchmarks
(C) Request for information
(D) Porter's Five Forces - ANSWER-C
3. A home medical testing device includes a very sensitive sensor with a
customized, easily readable display. This sensor is low-cost but high-risk
because shortages could stop production at the buying organization's plant.
In this situation, which term BEST describes the sensor?
,(A) Bottleneck item
(B) Noncritical component
(C) Leverage buy
(D) Routine component - ANSWER-A
4. Supply management typically provides top management all of the following
market intelligence information EXCEPT
(A) technology updates
(B) supply forecasts and market capability data
(C ) alternative sources of supply
(D) recommendations on financial standards - ANSWER-D
5. A supply manager is developing a process to monitor market trends.
Information about which of the following is of LEAST importance in this
instance?
(A) Market capacity
(B) Alternate sources
(C) Forward buying
(D) Supplier profiles - ANSWER-C
6. Country A has a large and steadily increasing trade surplus with Country B It
is MOST likely to also have
(A) barriers on Country B's imports
(B) shelters on Country B's imports
(C) preferences for Country B's imports
(D) balances on Country B's imports - ANSWER-A
,7. Qualitative methods such as the Delphi Method are forecasting models based
on
(A) Cause and effect relationships
(B) The collective judgment of individuals
(C) Trend, seasonality, cycles and randomness
(D) Demand and usage requirements - ANSWER-B
8. Which two of the following would most likely be effective monitoring
techniques for a buyer to take in order to forecast and project future general
market conditions and business activity?
I. Follow a single indicator for 12 months and project future variances from it
II. Identify indicators known to lead general business activity, verify their
reliability, and use them as a basis for projection
III. Select a group of indicators and project future activity on the basis of
current and past movement of these indicators
IV. Disregard indicators if seasonal fluctuations are not a part of the business
cycle of the company
(A) I and II
(B) I and IV
i C) II and ill
(D) III and IV - ANSWER-C
9. A supply manager uses regression analysis to model costs. Using three
variables to predict price, the analysis yields the following:
R=0.855
2
R =0.730
, Standard Error of Estimate= 328.827 F=85.815
p<0.001
What is the percentage of variance in price that is accounted for by the model?
(A) 73%
(B) 32.8%
(Co 85.5%
(D) Cannot be determined from above information - ANSWER-A
10. Of the following, which is the BEST measure of the rate of inflation?
(A) Year-to-year change in the consumer price index
(B) Year-to-year variation in annual rate of return
(C) Period-to-period change in interest rates
(D) Period-to-period valuation of tangible assets - ANSWER-A
11. Which of the following exchange rates are set by governments?
(A) Differential and floating
(B) Fixed and differential
(C) Variable and differential
(D) Variable and floating - ANSWER-B
12. A supermarket chain implements a new forecasting technique to determine
demand for dairy products. With the new technique, the mean absolute percent
error (MAPE) for dairy product forecasts rises from 3.2 % to 9.8%. Which of
the following is TRUE in this situation?
WITH 150 COMPLETE QUESTIONS AND
CORRECT VERIFIED ANSWERS |ALREADY
GRADED A+|2024 CERTIFIED PROFESSIONAL
IN SUPPLY MANAGEMENT (NEW!!)
1. A supply management organization partners with another department to
determine the feasibility of marketing a new product. To aid in decision-making,
the supply management organization should employ which of the following?
(A) Decision tree
(B) Pareto analysis
(C) Supplier forecast
(D) SWOT analysis - ANSWER-D
2. A supply manager is tasked with acquiring training services for a group of
engineers who will be part of specialized sourcing team charged with driving an
aggressive cost-reduction program. Which of the following methods would be
MOST appropriate for the supply manager to employ m identifying appropriate
training solutions?
(A) SWOT analysis
(B) Industry benchmarks
(C) Request for information
(D) Porter's Five Forces - ANSWER-C
3. A home medical testing device includes a very sensitive sensor with a
customized, easily readable display. This sensor is low-cost but high-risk
because shortages could stop production at the buying organization's plant.
In this situation, which term BEST describes the sensor?
,(A) Bottleneck item
(B) Noncritical component
(C) Leverage buy
(D) Routine component - ANSWER-A
4. Supply management typically provides top management all of the following
market intelligence information EXCEPT
(A) technology updates
(B) supply forecasts and market capability data
(C ) alternative sources of supply
(D) recommendations on financial standards - ANSWER-D
5. A supply manager is developing a process to monitor market trends.
Information about which of the following is of LEAST importance in this
instance?
(A) Market capacity
(B) Alternate sources
(C) Forward buying
(D) Supplier profiles - ANSWER-C
6. Country A has a large and steadily increasing trade surplus with Country B It
is MOST likely to also have
(A) barriers on Country B's imports
(B) shelters on Country B's imports
(C) preferences for Country B's imports
(D) balances on Country B's imports - ANSWER-A
,7. Qualitative methods such as the Delphi Method are forecasting models based
on
(A) Cause and effect relationships
(B) The collective judgment of individuals
(C) Trend, seasonality, cycles and randomness
(D) Demand and usage requirements - ANSWER-B
8. Which two of the following would most likely be effective monitoring
techniques for a buyer to take in order to forecast and project future general
market conditions and business activity?
I. Follow a single indicator for 12 months and project future variances from it
II. Identify indicators known to lead general business activity, verify their
reliability, and use them as a basis for projection
III. Select a group of indicators and project future activity on the basis of
current and past movement of these indicators
IV. Disregard indicators if seasonal fluctuations are not a part of the business
cycle of the company
(A) I and II
(B) I and IV
i C) II and ill
(D) III and IV - ANSWER-C
9. A supply manager uses regression analysis to model costs. Using three
variables to predict price, the analysis yields the following:
R=0.855
2
R =0.730
, Standard Error of Estimate= 328.827 F=85.815
p<0.001
What is the percentage of variance in price that is accounted for by the model?
(A) 73%
(B) 32.8%
(Co 85.5%
(D) Cannot be determined from above information - ANSWER-A
10. Of the following, which is the BEST measure of the rate of inflation?
(A) Year-to-year change in the consumer price index
(B) Year-to-year variation in annual rate of return
(C) Period-to-period change in interest rates
(D) Period-to-period valuation of tangible assets - ANSWER-A
11. Which of the following exchange rates are set by governments?
(A) Differential and floating
(B) Fixed and differential
(C) Variable and differential
(D) Variable and floating - ANSWER-B
12. A supermarket chain implements a new forecasting technique to determine
demand for dairy products. With the new technique, the mean absolute percent
error (MAPE) for dairy product forecasts rises from 3.2 % to 9.8%. Which of
the following is TRUE in this situation?
