CPSM DIAGNOSTIC EXAM 1 2024-2025 LATEST
ACTUAL EXAM WITH 300 COMPLETE
QUESTIONS AND CORRECT VERIFIED
ANSWERS (100% CORRECT ANSWERS)
ALREADY GRADED A+|2024 CERTIFIED
PROFESSIONAL IN SUPPLY MANAGEMENT
(NEWEST 2024)
1. Which of the following cost analysis methods would be LEAST useful in
selecting and negotiating with a domestic supplier of capital equipment to
be used in a production facility?
(A) Landed cost
(B) Life-cycle cost
(C) Purchase-related cost
(D) Total cost of ownership - ANSWER-(A) Landed cost
2. Both parties leave the room during a negotiation with the understanding
that they will reconvene at a later time. This is known as a
(A) stalemate
(B) recess
(C) caucus
(D) conference - ANSWER-(B) recess
3. A supply manager is preparing for negotiations with a business consulting
supplier. The supplier provides services to IT and corporate headquarters,
and has frequent interactions with a number of people across the company,
including executive staff. Which of the following is the BEST course of
action for the supply manager to take?
(A) Set up a 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 negotiations
will be conducted with the supplier, and ask the department heads
to share the information with their teams.
(D) Start negotiations - ANSWER-(A) Set up a 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.
4. The global commodity manager for manufacturer XYZ Inc. is conducting
negotiations on a long-term contract with DEF, a key strategic supplier.
DEF's delivery performance is rated at 73%, which is below the divisional
goal of 98%. For this reason, XYZ's operations manager wants to drop
DEF and find a new supplier. The commodity manage; however, is not in
agreement with the operations manage; and notes that as part of the long-
term agreement, DEF will provide a 15% cost reduction, which is critical
to achieving the cost-reduction goal for the division for the current year.
At this point, which of the following would be the MOST appropriate
course of action for the commodity manager to take?
(A) Move forward with the contract implementation, as negotiations
with DEF have been taken in good faith.
(B) Place contract negotiations on hold to validate the initial project
scope on delivery and cost targets for DEF.
(C) Pro
(D) ) Postpone contract negotiations to review the contract with the
operations manager to ensure improved performance - ANSWER-
(D) Postpone contract negotiations to review the contract with the
operations manager to ensure improved performance
5. 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 - ANSWER-(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.
6. 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 - ANSWER-(A) Marketing
7. When developing specifications, a buyer may consider information from
which of the following?
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 - ANSWER-(D) I, II, III and IV
, 8. 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 - ANSWER-(A) Lotting strategy
9. 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 - ANSWER-(A) confidential information
is protected
10.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 - ANSWER-(B) Letter of credit
ACTUAL EXAM WITH 300 COMPLETE
QUESTIONS AND CORRECT VERIFIED
ANSWERS (100% CORRECT ANSWERS)
ALREADY GRADED A+|2024 CERTIFIED
PROFESSIONAL IN SUPPLY MANAGEMENT
(NEWEST 2024)
1. Which of the following cost analysis methods would be LEAST useful in
selecting and negotiating with a domestic supplier of capital equipment to
be used in a production facility?
(A) Landed cost
(B) Life-cycle cost
(C) Purchase-related cost
(D) Total cost of ownership - ANSWER-(A) Landed cost
2. Both parties leave the room during a negotiation with the understanding
that they will reconvene at a later time. This is known as a
(A) stalemate
(B) recess
(C) caucus
(D) conference - ANSWER-(B) recess
3. A supply manager is preparing for negotiations with a business consulting
supplier. The supplier provides services to IT and corporate headquarters,
and has frequent interactions with a number of people across the company,
including executive staff. Which of the following is the BEST course of
action for the supply manager to take?
(A) Set up a 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 negotiations
will be conducted with the supplier, and ask the department heads
to share the information with their teams.
(D) Start negotiations - ANSWER-(A) Set up a 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.
4. The global commodity manager for manufacturer XYZ Inc. is conducting
negotiations on a long-term contract with DEF, a key strategic supplier.
DEF's delivery performance is rated at 73%, which is below the divisional
goal of 98%. For this reason, XYZ's operations manager wants to drop
DEF and find a new supplier. The commodity manage; however, is not in
agreement with the operations manage; and notes that as part of the long-
term agreement, DEF will provide a 15% cost reduction, which is critical
to achieving the cost-reduction goal for the division for the current year.
At this point, which of the following would be the MOST appropriate
course of action for the commodity manager to take?
(A) Move forward with the contract implementation, as negotiations
with DEF have been taken in good faith.
(B) Place contract negotiations on hold to validate the initial project
scope on delivery and cost targets for DEF.
(C) Pro
(D) ) Postpone contract negotiations to review the contract with the
operations manager to ensure improved performance - ANSWER-
(D) Postpone contract negotiations to review the contract with the
operations manager to ensure improved performance
5. 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 - ANSWER-(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.
6. 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 - ANSWER-(A) Marketing
7. When developing specifications, a buyer may consider information from
which of the following?
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 - ANSWER-(D) I, II, III and IV
, 8. 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 - ANSWER-(A) Lotting strategy
9. 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 - ANSWER-(A) confidential information
is protected
10.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 - ANSWER-(B) Letter of credit
