CPSM DIAGNOSTIC PRACTICE EXAM 1
2025 QUESTIONS AND ANSWERS
A supply manager issues a request to proposal for engineering services. In order to provide
clarification on the specification on the specifications, the company holds a question-and-
answer session for interested suppliers. Shortly after the question-and-answer session is held
and before any proposals are actually received, the firm's engineering department revises the
specifications. Given this situation, which of the following should the supply manager do FIRST?
(A) Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
(B) Write a letter to each supplier advising of the change, tell each supplier when the new
specifications will be available, and ask for immediate notification if additional time will be
required.
(C) Hold an interim pre-bid meeting withal suppliers to discuss and clarify the revi - ANS (A)
Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
Which of the following should have the MOST influence in determining end product
specifications, so as to minimize the potential for returns?
(A) Marketing
(B) Supply management
(C) Engineering
(D) Manufacturing - ANS (A) Marketing
When developing specifications, a buyer may consider information from which of the
following?
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 1
,I. Suppliers
II. Industry Standards
III. Professional Organizations
IV. Competitors
(A) I and IV only
(B) II and III only
(C) I, II and III only
(D) I, II, III and IV - ANS (D) I, II, III and IV
A supply manager completes a category profile and identifies services provided through
multiple suppliers. A market and industry analysis shows that the service provides are growing
their businesses by acquiring competitors, thus enabling them to provide a greater range of
services. Which of the following techniques will BEST enable the supply manager to leverage
market competition?
(A) Lotting strategy
(B) Market-basket model
(C) Market segmentation
(D) Sole sourcing - ANS (A) Lotting strategy
A supply manager implements a system whereby the potential supplier names are hidden until
final contract awards are made. This example is BEST described as ensuring
(A) confidential information is protected
(B) diversity initiatives are met
(C) total costs are minimized
(D) collusion will not occur - ANS (A) confidential information is protected
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 2
,A supply manager for a privately held manufacturing company is preparing an RFP for raw
materials. None of
the RFP recipients is an incumbent, and the award resulting from the RFP is expected to be of
significant dollar value. The supply manager is concerned that the lack of publicly available
financial information could impact willingness of the prospective suppliers to submit proposals.
Which of the following will BEST address the concerns of the prospective bidders?
(A) Escrow account
(B) Letter of credit
(C) Payment bond
(D) Surety bond - ANS (B) Letter of credit
Which of the following is the LEAST critical element in a best alternative to a negotiated
agreement (BATNA)?
(A) Alternate products
(B) In-house capabilities
(C) Source options
(D) Supplier capabilities - ANS (D) Supplier capabilities
A supply manager is negotiating with a critical supplier. The parties have relatively equal
bargaining power. Which of the following would MOST likely occur in "win-win" negotiation
between these parties?
(A) The supply manager and supplier conclude the negotiation by splitting the difference
between their respective positions.
(B) The supply manager and supplier each find concessions with equal weight/value to provide
a balanced outcome.
(C) The supply manager and supplier decide to share confidential information.
(D) The supply manager and supplier establish an appropriate settlement range for the
continuation of
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 3
, negotiations. - ANS (B) The supply manager and supplier each find concessions with equal
weight/value to provide a balanced outcome.
An in-depth analysis of a supplier's proposal is useful because it is important to understand the
(A) SOW throughout the evaluation process
(B) SOW throughout the proposal development process
(C) supplier's proposal throughout the negotiation process
(D) supplier's firm-fixed price - ANS (C) supplier's proposal throughout the negotiation
process
Which of the following is LEAST appropriate as an objective for negotiations?
(A) Meeting the minimum essential needs of the organization
(B) Maintaining control over contract performance
(C) Determining the negotiation site
(D) Ensuring the correct ratio of contract administrators to workers - ANS (D) Ensuring the
correct ratio of contract administrators to workers
Which of the following is likely to be the BEST use of social media sites such as LinkedIn during
the preparation for negotiations with a potential supplier?
(A) Selecting the ideal negotiation sire
(B) Determining objectives for the negotiation
(C) Collecting information, reports and comments on the supplier
(D) Defining the roles and responsibilities of the negotiating team - ANS (C) Collecting
information, reports and comments on the supplier.
A supply manager for XYZ Corp. is planning for negotiations with Supplier A, a provider of
software critical for use on XYZ's production line. XYZ likes the software, but was recently
alerted by Supplier A that they are dropping support for the version that XYZ uses. The supply
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 4
2025 QUESTIONS AND ANSWERS
A supply manager issues a request to proposal for engineering services. In order to provide
clarification on the specification on the specifications, the company holds a question-and-
answer session for interested suppliers. Shortly after the question-and-answer session is held
and before any proposals are actually received, the firm's engineering department revises the
specifications. Given this situation, which of the following should the supply manager do FIRST?
(A) Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
(B) Write a letter to each supplier advising of the change, tell each supplier when the new
specifications will be available, and ask for immediate notification if additional time will be
required.
(C) Hold an interim pre-bid meeting withal suppliers to discuss and clarify the revi - ANS (A)
Call and email the suppliers of the change, tell them when the new specifications will be
available, and ask for immediate notification if additional time will be required.
Which of the following should have the MOST influence in determining end product
specifications, so as to minimize the potential for returns?
(A) Marketing
(B) Supply management
(C) Engineering
(D) Manufacturing - ANS (A) Marketing
When developing specifications, a buyer may consider information from which of the
following?
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 1
,I. Suppliers
II. Industry Standards
III. Professional Organizations
IV. Competitors
(A) I and IV only
(B) II and III only
(C) I, II and III only
(D) I, II, III and IV - ANS (D) I, II, III and IV
A supply manager completes a category profile and identifies services provided through
multiple suppliers. A market and industry analysis shows that the service provides are growing
their businesses by acquiring competitors, thus enabling them to provide a greater range of
services. Which of the following techniques will BEST enable the supply manager to leverage
market competition?
(A) Lotting strategy
(B) Market-basket model
(C) Market segmentation
(D) Sole sourcing - ANS (A) Lotting strategy
A supply manager implements a system whereby the potential supplier names are hidden until
final contract awards are made. This example is BEST described as ensuring
(A) confidential information is protected
(B) diversity initiatives are met
(C) total costs are minimized
(D) collusion will not occur - ANS (A) confidential information is protected
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 2
,A supply manager for a privately held manufacturing company is preparing an RFP for raw
materials. None of
the RFP recipients is an incumbent, and the award resulting from the RFP is expected to be of
significant dollar value. The supply manager is concerned that the lack of publicly available
financial information could impact willingness of the prospective suppliers to submit proposals.
Which of the following will BEST address the concerns of the prospective bidders?
(A) Escrow account
(B) Letter of credit
(C) Payment bond
(D) Surety bond - ANS (B) Letter of credit
Which of the following is the LEAST critical element in a best alternative to a negotiated
agreement (BATNA)?
(A) Alternate products
(B) In-house capabilities
(C) Source options
(D) Supplier capabilities - ANS (D) Supplier capabilities
A supply manager is negotiating with a critical supplier. The parties have relatively equal
bargaining power. Which of the following would MOST likely occur in "win-win" negotiation
between these parties?
(A) The supply manager and supplier conclude the negotiation by splitting the difference
between their respective positions.
(B) The supply manager and supplier each find concessions with equal weight/value to provide
a balanced outcome.
(C) The supply manager and supplier decide to share confidential information.
(D) The supply manager and supplier establish an appropriate settlement range for the
continuation of
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 3
, negotiations. - ANS (B) The supply manager and supplier each find concessions with equal
weight/value to provide a balanced outcome.
An in-depth analysis of a supplier's proposal is useful because it is important to understand the
(A) SOW throughout the evaluation process
(B) SOW throughout the proposal development process
(C) supplier's proposal throughout the negotiation process
(D) supplier's firm-fixed price - ANS (C) supplier's proposal throughout the negotiation
process
Which of the following is LEAST appropriate as an objective for negotiations?
(A) Meeting the minimum essential needs of the organization
(B) Maintaining control over contract performance
(C) Determining the negotiation site
(D) Ensuring the correct ratio of contract administrators to workers - ANS (D) Ensuring the
correct ratio of contract administrators to workers
Which of the following is likely to be the BEST use of social media sites such as LinkedIn during
the preparation for negotiations with a potential supplier?
(A) Selecting the ideal negotiation sire
(B) Determining objectives for the negotiation
(C) Collecting information, reports and comments on the supplier
(D) Defining the roles and responsibilities of the negotiating team - ANS (C) Collecting
information, reports and comments on the supplier.
A supply manager for XYZ Corp. is planning for negotiations with Supplier A, a provider of
software critical for use on XYZ's production line. XYZ likes the software, but was recently
alerted by Supplier A that they are dropping support for the version that XYZ uses. The supply
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 4
