1
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CPSM Exam 1 - Sourcing Questions and
Answers (100% Correct Answers) Already
Graded A+
Q: A supply manager is assigned the responsibility to define a
sourcing strategy for an organization whose products are highly
complex and demand a high level of quality. Production
downtime can result in the organization paying customers for late
© 2025 Assignment Expert
or missed deliveries. When developing the sourcing strategy,
which is the MOST important item to start with:
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A. Investigating existing versus new sources
B. Determining the availability of the market's high quality
potential suppliers
C. Investigating alternative and backup supplier requirements
D. Identifying key stakeholders
Ans: D - Is correct because stakeholders have the most vested interest
in any sourcing strategy. They define actual needs that need to be
sourced.
Q: The central sourcing manager in a multi-site organization is
reviewing requirements for a new telephone system with the
operations manager at one of the sites. The operations manager
has an established budget and has selected a system. However,
the purchase falls outside of the site's purchasing authority, so the
approval of the central sourcing manager is required. Which of
the following steps should the central sourcing manager take
next?
, 2
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A. Make the specifications generic and send invitations to bid to
multiple suppliers
B. Send invitations to bid to suppliers of the desired system
C. Verify that the site manager's needs are consistent with the
organization's strategy
D. Check with external stakeholders to determine if the new
telephone system is required.
Ans: C - When developing sourcing plans, the budget, operations
requirements, and strategic objectives must be considered.
Q: VWX, INC. is a large food manufacturer. As part of a social
© 2025 Assignment Expert
responsibility initiative, VWX decides to phase out the purchase of
a sugar substitute within three years. After this initiative is
announced, VWX's marketing department identifies a potential
market for low calorie snacks. The marketing department decides
Guru01 - Stuvia
to pilot a small batch production of these snacks. When the
specifications for the new product are sent to supply
management to execute the sourcing strategy, the supply
manager realizes that the specifications call for a sugar substitute.
Which of the following is MOST likely the cause of this conflict?
A. The marketing department's decision is inconsistent with the
company's strategic goal.
B. Not all internal stakeholders were properly engaged in the
development of the specifications.
C. The marketing department failed to consider the external
stakeholders needs during the development of the specifica
Ans: A. Sourcing strategies are executed based on organizational
goals.
Q: A Supply manager is preparing for negotiations with a business
consulting supplier. The supplier provides services to Information
Technology and corporate headquarters, and has frequent
interactions with a number of people across the company,
, 3
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including executive staff. Which of the following is the BEST course
of action for the supply manager to take?
A. Set up meeting with all the key stakeholders to discuss the
upcoming negotiations and what they should say, and send a
follow-up email to all attendees plus those who could not attend.
B. Send an email to all employees, letting them know that
negotiations are being conducted with this supplier, and that no
one should have any interaction with the supplier while
negotiations continue.
C. Contact the head of each department and explain that
© 2025 Assignment Expert
negotiations will be conducted with the supplier, and ask the
department heads to share the information with their teams.
D. St
Guru01 - Stuvia
Ans: A - Allows for the supply manager to share the purpose behind
the negotiation and obtain business buy-in.
Q: BCD Fashion Inc. is preparing to launch a new product line
consisting of high-profile fashion items. The firm has conducted
extensive market research, and a rapidly growing demand for
these items has been identified. BCD's supply management
department has developed a sourcing plan based on input from
design, marketing, and senior management.
In preparation for launch, the supply management department
ensures that BCD's suppliers are adequately equipped to handle
the quickly shifting demand. However, when the product line
launches, deliveries to retail locations experience delay. BCD's
supply manager discovers that the firm's main logistics provider
was not expecting an influx in shipment quantity. Which of the
following is MOST likely the cause of the problem?
A. Internal stakeholders were not fully engaged.
, 4
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B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu
Ans: B - All internal stakeholders were engaged and market research
was adequately conducted; however, one key external stakeholder
(trucking companies) was not engaged about the launch of the new
product line.
Q: The chief procurement officer (CPO) for a manufacturing
company is informed by the CEO that the procurement team is
not adding value or helping the firm meet strategic goals. The
CPO is committed to delivering value for the organization. Given
© 2025 Assignment Expert
this situation, which of the following is the FIRST step the CPO
should take in ensuring the success of the procurement team?
Guru01 - Stuvia
A. Replace existing staff with individuals that hold professional
designations
B. Review the current purchasing and supplier management
policy
C. Meet with key business stakeholders to understand their
priorities
D. Interview current team members and ask for ideas to improve
interaction.
Ans: C - In order for the purchasing function to deliver value and meet
the strategic objections of the organization, the new CPO must first
meet with key stakeholders to understand their key priorities for the
coming year.
Q: Which of the following BEST describes a stakeholder?
A. An internal person who is most affected by a particular
decision-making process
B. An internal person who has final authority in a decision-making
process
For Expert help and assignment solutions, +254707240657
CPSM Exam 1 - Sourcing Questions and
Answers (100% Correct Answers) Already
Graded A+
Q: A supply manager is assigned the responsibility to define a
sourcing strategy for an organization whose products are highly
complex and demand a high level of quality. Production
downtime can result in the organization paying customers for late
© 2025 Assignment Expert
or missed deliveries. When developing the sourcing strategy,
which is the MOST important item to start with:
Guru01 - Stuvia
A. Investigating existing versus new sources
B. Determining the availability of the market's high quality
potential suppliers
C. Investigating alternative and backup supplier requirements
D. Identifying key stakeholders
Ans: D - Is correct because stakeholders have the most vested interest
in any sourcing strategy. They define actual needs that need to be
sourced.
Q: The central sourcing manager in a multi-site organization is
reviewing requirements for a new telephone system with the
operations manager at one of the sites. The operations manager
has an established budget and has selected a system. However,
the purchase falls outside of the site's purchasing authority, so the
approval of the central sourcing manager is required. Which of
the following steps should the central sourcing manager take
next?
, 2
For Expert help and assignment solutions, +254707240657
A. Make the specifications generic and send invitations to bid to
multiple suppliers
B. Send invitations to bid to suppliers of the desired system
C. Verify that the site manager's needs are consistent with the
organization's strategy
D. Check with external stakeholders to determine if the new
telephone system is required.
Ans: C - When developing sourcing plans, the budget, operations
requirements, and strategic objectives must be considered.
Q: VWX, INC. is a large food manufacturer. As part of a social
© 2025 Assignment Expert
responsibility initiative, VWX decides to phase out the purchase of
a sugar substitute within three years. After this initiative is
announced, VWX's marketing department identifies a potential
market for low calorie snacks. The marketing department decides
Guru01 - Stuvia
to pilot a small batch production of these snacks. When the
specifications for the new product are sent to supply
management to execute the sourcing strategy, the supply
manager realizes that the specifications call for a sugar substitute.
Which of the following is MOST likely the cause of this conflict?
A. The marketing department's decision is inconsistent with the
company's strategic goal.
B. Not all internal stakeholders were properly engaged in the
development of the specifications.
C. The marketing department failed to consider the external
stakeholders needs during the development of the specifica
Ans: A. Sourcing strategies are executed based on organizational
goals.
Q: A Supply manager is preparing for negotiations with a business
consulting supplier. The supplier provides services to Information
Technology and corporate headquarters, and has frequent
interactions with a number of people across the company,
, 3
For Expert help and assignment solutions, +254707240657
including executive staff. Which of the following is the BEST course
of action for the supply manager to take?
A. Set up meeting with all the key stakeholders to discuss the
upcoming negotiations and what they should say, and send a
follow-up email to all attendees plus those who could not attend.
B. Send an email to all employees, letting them know that
negotiations are being conducted with this supplier, and that no
one should have any interaction with the supplier while
negotiations continue.
C. Contact the head of each department and explain that
© 2025 Assignment Expert
negotiations will be conducted with the supplier, and ask the
department heads to share the information with their teams.
D. St
Guru01 - Stuvia
Ans: A - Allows for the supply manager to share the purpose behind
the negotiation and obtain business buy-in.
Q: BCD Fashion Inc. is preparing to launch a new product line
consisting of high-profile fashion items. The firm has conducted
extensive market research, and a rapidly growing demand for
these items has been identified. BCD's supply management
department has developed a sourcing plan based on input from
design, marketing, and senior management.
In preparation for launch, the supply management department
ensures that BCD's suppliers are adequately equipped to handle
the quickly shifting demand. However, when the product line
launches, deliveries to retail locations experience delay. BCD's
supply manager discovers that the firm's main logistics provider
was not expecting an influx in shipment quantity. Which of the
following is MOST likely the cause of the problem?
A. Internal stakeholders were not fully engaged.
, 4
For Expert help and assignment solutions, +254707240657
B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu
Ans: B - All internal stakeholders were engaged and market research
was adequately conducted; however, one key external stakeholder
(trucking companies) was not engaged about the launch of the new
product line.
Q: The chief procurement officer (CPO) for a manufacturing
company is informed by the CEO that the procurement team is
not adding value or helping the firm meet strategic goals. The
CPO is committed to delivering value for the organization. Given
© 2025 Assignment Expert
this situation, which of the following is the FIRST step the CPO
should take in ensuring the success of the procurement team?
Guru01 - Stuvia
A. Replace existing staff with individuals that hold professional
designations
B. Review the current purchasing and supplier management
policy
C. Meet with key business stakeholders to understand their
priorities
D. Interview current team members and ask for ideas to improve
interaction.
Ans: C - In order for the purchasing function to deliver value and meet
the strategic objections of the organization, the new CPO must first
meet with key stakeholders to understand their key priorities for the
coming year.
Q: Which of the following BEST describes a stakeholder?
A. An internal person who is most affected by a particular
decision-making process
B. An internal person who has final authority in a decision-making
process
