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ISM CPSM Bridge Sample Questions:

1. Metrics measure productivity, efficiency and how well a plan is implemented. Which metric is used to show how effectively an organization spends purchase dollars?

A) Workload measures
B) Cost-effectiveness measures
C) Administration and control measures
D) Price performance measures

2. Which "supplier characteristic" includes a supplier who has fixed costs preventing them from further price reductions?

A) Product application
B) Quality problems
C) Inventory management
D) Inability to reduce costs

3. Analyzing and resolving issues identified in a supply management audit enable the supply manager to tell how well the supply management department is doing. All of the following are reasons for undergoing an audit EXCEPT.

A) Audits identify and prevent mistakes and problems.
B) An annual audit is required by stakeholders.
C) Audits may be a regulatory or industry requirement.
D) Audits help to gauge the efficiency and effectiveness of processes.

4. Risk management is the directing and conducting of activities necessary to reduce or eliminate or mitigate the impact of factors which could result in injury, lawsuit, damage or ultimate business failure. These activities include all of the following EXCEPT.

A) Supply management risk monitoring
B) Supply management business base
C) Supply management risk mitigation
D) Supply management risk planning

5. Supply management professionals must deal with brand and reputation risks which may be associated with the loss of customers. The results of a strong brand reputation would result in all of the following
EXCEPT.

A) Regulatory penalties
B) Becoming a favored supplier
C) Retaining shareholders
D) Lowering the total costs of business operations

Solutions: