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. Identifying key stakeholders
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?
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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
CORRECT ANSWER
C. Verify that the site manager's needs are consistent with the organization's strategy
Question 3
VWX, Inc. is a large food manufacturer. As a 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 specif
CORRECT ANSWER
B. Not all internal stakeholders were properly engaged in the development of the
specifications.
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,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?
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. S
CORRECT 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.
Question 5
In strategic sourcing, effectiveness requires that decisions are based on data.
Which of the following data should a supply management professional collect?
Collect data:
A. Based upon the limitations of analytical tools available.
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, B. Based on the technology available.
C. As needed to address hypotheses.
D. Analyze only quantitative data.
CORRECT ANSWER
C. As needed to address hypotheses.
Question 6
Data in a spend analysis should be refreshed depending on the use of the information.
Quarterly or bi-annual updates are generally sufficient for:
A. Tracking benefits from previous sourcing analyses.
B. Reviewing sourcing opportunities.
C. Training new supply management professionals.
D. Providing reports to the senior leadership team.
CORRECT ANSWER
B. Reviewing sourcing opportunities.
Question 7
A supply manager is assessing the possibility of sourcing a new component.
Which of the following tasks should be undertaken as a FIRST step in the process?
A. Understand stakeholder requirements
B. Analyze market trends and suppliers
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@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. Identifying key stakeholders
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?
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@THE STUDY VAULT
,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
CORRECT ANSWER
C. Verify that the site manager's needs are consistent with the organization's strategy
Question 3
VWX, Inc. is a large food manufacturer. As a 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 specif
CORRECT ANSWER
B. Not all internal stakeholders were properly engaged in the development of the
specifications.
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@THE STUDY VAULT
,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?
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. S
CORRECT 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.
Question 5
In strategic sourcing, effectiveness requires that decisions are based on data.
Which of the following data should a supply management professional collect?
Collect data:
A. Based upon the limitations of analytical tools available.
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@THE STUDY VAULT
, B. Based on the technology available.
C. As needed to address hypotheses.
D. Analyze only quantitative data.
CORRECT ANSWER
C. As needed to address hypotheses.
Question 6
Data in a spend analysis should be refreshed depending on the use of the information.
Quarterly or bi-annual updates are generally sufficient for:
A. Tracking benefits from previous sourcing analyses.
B. Reviewing sourcing opportunities.
C. Training new supply management professionals.
D. Providing reports to the senior leadership team.
CORRECT ANSWER
B. Reviewing sourcing opportunities.
Question 7
A supply manager is assessing the possibility of sourcing a new component.
Which of the following tasks should be undertaken as a FIRST step in the process?
A. Understand stakeholder requirements
B. Analyze market trends and suppliers
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@THE STUDY VAULT
