Question 1
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 or missed
deliveries. When developing the sourcing strategy, which is the MOST important item to
start with:
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
CORRECT ANSWER
D - Is correct because stakeholders have the most vested interest in any sourcing
strategy. They define actual needs that need to be sourced.
Question 2
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?
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
1
@THE STUDY VAULT
,D. Check with external stakeholders to determine if the new telephone system is required.
CORRECT ANSWER
C - When developing sourcing plans, the budget, operations requirements, and strategic
objectives must be considered.
Question 3
VWX, INC. is a large food manufacturer. As part of a social 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 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
CORRECT ANSWER
A. Sourcing strategies are executed based on organizational goals.
Question 4
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, including executive
staff. Which of the following is the BEST course of action for the supply manager to take?
2
@THE STUDY VAULT
,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 negotiations will be conducted
with the supplier, and ask the department heads to share the information with their teams.
D. St
CORRECT ANSWER
A - Allows for the supply manager to share the purpose behind the negotiation and
obtain business buy-in.
Question 5
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.
B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu
CORRECT ANSWER
3
@THE STUDY VAULT
, 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.
Question 6
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 this situation, which
of the following is the FIRST step the CPO should take in ensuring the success of the
procurement team?
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.
CORRECT ANSWER
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.
Question 7
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
C. An internal or external person who will be affected by and/or can influence a decision-
making process
4
@THE STUDY VAULT
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 or missed
deliveries. When developing the sourcing strategy, which is the MOST important item to
start with:
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
CORRECT ANSWER
D - Is correct because stakeholders have the most vested interest in any sourcing
strategy. They define actual needs that need to be sourced.
Question 2
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?
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
1
@THE STUDY VAULT
,D. Check with external stakeholders to determine if the new telephone system is required.
CORRECT ANSWER
C - When developing sourcing plans, the budget, operations requirements, and strategic
objectives must be considered.
Question 3
VWX, INC. is a large food manufacturer. As part of a social 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 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
CORRECT ANSWER
A. Sourcing strategies are executed based on organizational goals.
Question 4
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, including executive
staff. Which of the following is the BEST course of action for the supply manager to take?
2
@THE STUDY VAULT
,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 negotiations will be conducted
with the supplier, and ask the department heads to share the information with their teams.
D. St
CORRECT ANSWER
A - Allows for the supply manager to share the purpose behind the negotiation and
obtain business buy-in.
Question 5
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.
B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu
CORRECT ANSWER
3
@THE STUDY VAULT
, 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.
Question 6
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 this situation, which
of the following is the FIRST step the CPO should take in ensuring the success of the
procurement team?
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.
CORRECT ANSWER
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.
Question 7
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
C. An internal or external person who will be affected by and/or can influence a decision-
making process
4
@THE STUDY VAULT
