1 Exampromax - Stuvia US 2025/2026
CPSM Exam 1 Sourcing Process Overview Questions
and 100% Correct Answers Already Graded A+
Q: Recognition of Need
Ans: Identifying that a product or service is required.
Q: Specification of Need
Ans: Detailing technical and performance requirements, quality, quantity, and
delivery timing.
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Q: Searching for Potential Sources
Exampromax - Stuvia US
Ans: Identifying suppliers who could fulfill the need.
Q: Analyze Suppliers' Proposals and Capabilities
Ans: Evaluating supplier bids and their ability to meet specifications.
Q: Negotiation with and Selection of Supplier
Ans: Selecting the best-value supplier and negotiating contract terms.
Q: Administration of the Contract
Ans: Managing the agreement and ensuring compliance.
Q: Evaluation of Performance and Feedback
Ans: Reviewing supplier performance and sharing feedback.
Q: Disposal of Excess, Scrap, or Surplus
Ans: Managing remaining inventory or materials at the end of use.
Q: Internal Stakeholders
, 2 Exampromax - Stuvia US 2025/2026
Ans: Internal customers (e.g., business units, departments), top management,
finance, operations, engineering, legal, and others impacted by sourcing decisions.
Q: External Stakeholders
Ans: Suppliers and potential suppliers, end customers, logistics providers,
governments (due to regulations), trade unions, community members, and other
supply chain partners.
Q: Needs
Ans: Essential attributes that the good or service must have to fulfill the
organization's requirements (e.g., minimum technical specs, required quality level).
Q: Wants
© 2025 Assignment Expert
Ans: Desirable features or performance attributes that are not mandatory but add
Exampromax - Stuvia US
value (e.g., advanced features, brand preferences).
Q: Budget
Ans: Ensures spending stays within financial limits and sourcing must deliver value
without exceeding allocated costs.
Q: Operational
Ans: Addresses delivery timing, packaging, inventory levels, and risk mitigation,
aligning with day-to-day functional requirements of the organization.
Q: Strategic
Ans: Supports long-term goals of the organization, business units, and the supply
function, aligning internal stakeholder demands with strategic sourcing priorities.
Q: Direct Materials
Ans: Materials that are directly used in the production of goods.
Q: Indirect Materials (MRO)
Ans: Materials used in maintenance, repair, and operations that are not part of the
final product.
, 3 Exampromax - Stuvia US 2025/2026
Q: Capital Expenditures
Ans: Funds used by a company to acquire or upgrade physical assets such as
property, industrial buildings, or equipment.
Q: Operating Expense
Ans: The ongoing cost for running a product, business, or system.
Q: Corporation
Ans: A legal entity that exists independently of its creators which has many rights
given to individuals, can enter into contracts, buy and sell.
Q: Disposal
© 2025 Assignment Expert
Ans: The process of removing something from a location, typically the removal of
Exampromax - Stuvia US
scrap, surplus, excess, obsolete and waste items from an organization's premises.
Q: Influence
Ans: The capability to affect actions, behaviors or opinions, often without overt or
apparent action on the part of the influencer.
Q: Objectives
Ans: General statements about expected outcomes; targets set by management.
Q: Solicitation
Ans: A request to suppliers to make submission to a purchasing organization.
Q: Critical Document
Ans: Statement of Work (SOW).
Q: Public Sector
Ans: Invitation for Proposal (IFP).
Q: Negotiated Procurement
CPSM Exam 1 Sourcing Process Overview Questions
and 100% Correct Answers Already Graded A+
Q: Recognition of Need
Ans: Identifying that a product or service is required.
Q: Specification of Need
Ans: Detailing technical and performance requirements, quality, quantity, and
delivery timing.
© 2025 Assignment Expert
Q: Searching for Potential Sources
Exampromax - Stuvia US
Ans: Identifying suppliers who could fulfill the need.
Q: Analyze Suppliers' Proposals and Capabilities
Ans: Evaluating supplier bids and their ability to meet specifications.
Q: Negotiation with and Selection of Supplier
Ans: Selecting the best-value supplier and negotiating contract terms.
Q: Administration of the Contract
Ans: Managing the agreement and ensuring compliance.
Q: Evaluation of Performance and Feedback
Ans: Reviewing supplier performance and sharing feedback.
Q: Disposal of Excess, Scrap, or Surplus
Ans: Managing remaining inventory or materials at the end of use.
Q: Internal Stakeholders
, 2 Exampromax - Stuvia US 2025/2026
Ans: Internal customers (e.g., business units, departments), top management,
finance, operations, engineering, legal, and others impacted by sourcing decisions.
Q: External Stakeholders
Ans: Suppliers and potential suppliers, end customers, logistics providers,
governments (due to regulations), trade unions, community members, and other
supply chain partners.
Q: Needs
Ans: Essential attributes that the good or service must have to fulfill the
organization's requirements (e.g., minimum technical specs, required quality level).
Q: Wants
© 2025 Assignment Expert
Ans: Desirable features or performance attributes that are not mandatory but add
Exampromax - Stuvia US
value (e.g., advanced features, brand preferences).
Q: Budget
Ans: Ensures spending stays within financial limits and sourcing must deliver value
without exceeding allocated costs.
Q: Operational
Ans: Addresses delivery timing, packaging, inventory levels, and risk mitigation,
aligning with day-to-day functional requirements of the organization.
Q: Strategic
Ans: Supports long-term goals of the organization, business units, and the supply
function, aligning internal stakeholder demands with strategic sourcing priorities.
Q: Direct Materials
Ans: Materials that are directly used in the production of goods.
Q: Indirect Materials (MRO)
Ans: Materials used in maintenance, repair, and operations that are not part of the
final product.
, 3 Exampromax - Stuvia US 2025/2026
Q: Capital Expenditures
Ans: Funds used by a company to acquire or upgrade physical assets such as
property, industrial buildings, or equipment.
Q: Operating Expense
Ans: The ongoing cost for running a product, business, or system.
Q: Corporation
Ans: A legal entity that exists independently of its creators which has many rights
given to individuals, can enter into contracts, buy and sell.
Q: Disposal
© 2025 Assignment Expert
Ans: The process of removing something from a location, typically the removal of
Exampromax - Stuvia US
scrap, surplus, excess, obsolete and waste items from an organization's premises.
Q: Influence
Ans: The capability to affect actions, behaviors or opinions, often without overt or
apparent action on the part of the influencer.
Q: Objectives
Ans: General statements about expected outcomes; targets set by management.
Q: Solicitation
Ans: A request to suppliers to make submission to a purchasing organization.
Q: Critical Document
Ans: Statement of Work (SOW).
Q: Public Sector
Ans: Invitation for Proposal (IFP).
Q: Negotiated Procurement
