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ISM CPSM Bridge Sample Questions:

1. In order to achieve the optimal structure of the supply management environment, which best practice would the supply management professional use to compare the organization to other organizations and involves inventing, improvising, and learning each day?

A) Business intelligence
B) Competitive intelligence
C) Reengineering
D) Benchmarking

2. When team negotiations are required the negotiation plan should include who will participate, individual roles, the team leader and?

A) Team subject matter experts for the negotiation.
B) Team goals related to the negotiation in the negotiation plan.
C) Operating parameters in the negotiation process.
D) Purchase plan for the negotiation.

3. As the supply management professional you have concerns that the interest rates have risen and your cost of capital will increase. What will be the impact on suppliers?

A) Suppliers run the risk of financial in solubility.
B) Suppliers will increase their cost as their profits will be lessened due to the interest rate increase.
C) The supplier will try to maintain smaller inventories and risk being out of stock and less likely to maintain the ability to fill orders.
D) Suppliers will increase their cost as an attrition cost.

4. Communication in the resolution process is managed by the supply management professional. If the resolution of a problem has a financial impact on the organization the supply management professional may?

A) Discontinue use of the current supplier.
B) Choose a new supplier.
C) Withhold payment or assess liquidated damages.
D) Back-charge for delivery costs.

5. The supply management professional is responsible for developing disposition plans for excess inventory.
The systematic organizational effort to manage surplus equipment and materials in a manner that recoups as much as possible of the original capital expended as defined in the ISM glossary is?

A) Cost recovery disposition plans for excess inventory.
B) Capital recovery disposition plans for excess inventory.
C) Investment recovery disposition plan for excess inventory.
D) Asset recovery disposition plans for excess inventory.

Solutions: