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ISM Supply Management Core Exam Sample Questions (Q230-Q235):

NEW QUESTION # 230
A director of supply management obtains approval to implement a spend analysis matrix. While the matrix will be primarily used to support the development of sourcing strategies, it will also be leveraged by functional lines of the business for budget planning. Which of the following is the MOST important step for the director to take in order to ensure the information from the spend analysis is accurate and reliable?

A. Select a best-in-class supplier as partner for developing the matrix and on-going hosting
B. Meet with key stakeholders to gather reporting requirements and understand expectations
C. Engage information technology (IT) to develop detailed specifications for all inbound integrations
D. Lead a sub-initiative to cleanse supplier and spend data before it is loaded

Answer: D

Explanation:
* Importance of Data Accuracy: Accurate and reliable data is crucial for effective spend analysis and sourcing strategies.
* Data Cleansing: Cleansing data ensures that errors, duplicates, and inconsistencies are removed, leading to more accurate analysis.
* Foundation for Analysis: Clean and accurate data forms the foundation for reliable and meaningful spend analysis, which supports both sourcing strategies and budget planning. 4. Stakeholder Confidence: Ensuring data integrity will increase stakeholder confidence in the spend analysis matrix.
* Sub-Initiative Leadership: Leading the data cleansing initiative ensures that the director oversees the process and maintains high standards. References
* CIPS (Chartered Institute of Procurement & Supply) guidelines on spend analysis and data management.

NEW QUESTION # 231
A landlocked student believes that people would prefer to live near the ocean if they could afford the additional expense. To test this, the student wants to see whether states bordering an ocean are more likely to have a larger percent of wealthy families than states without an ocean coast. The student collects data from the 50 U.S. states on the percent of families making over $200,000 a year along with whether the state has an ocean coast (where 1 means the state has an ocean coast).

Based on the regression results given below, what can be said at the 95% confidence level?

A. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 2.77% of states with an ocean coast. The result is statistically significant.
B. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 6.89% of states with an ocean coast. The result is statistically significant.
C. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 2.77% of states with an ocean coast. The result is not statistically significant.
D. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 6.89% of states with an ocean coast. The result is not statistically significant.

Answer: B

NEW QUESTION # 232
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework, which of the following Is an element of effective internal controls?

A. Management
B. Auditing
C. Documenting
D. Monitoring

Answer: D

NEW QUESTION # 233
A supply manager for JKL, Inc. finds a potential new supplier for an item included In a finished product.
Quality and service are comparable to those of the current supplier, and the new supplier's cost per unit is $.03 lower than that of the current supplier. Making the transition to the new supplier will require changes to operations costing approximately $12,000. How many units would JKL need to buy in order to justify changing suppliers?

A. 400,001
B. 360,001
C. 36,001
D. 40,001

Answer: A

NEW QUESTION # 234
Of the following, the BEST way for supply management to effectively support stakeholders is to ensure that

A. stakeholders are regarded as equally important
B. communications are tailored to each stakeholder
C. communications with stakeholders are held face-to-face
D. goals are given precedence over a team environment

Answer: B

Explanation:
The best way for supply management to effectively support stakeholders is to ensure that communications are tailored to each stakeholder. Tailoring communications means providing relevant information in a manner that each stakeholder understands and values. This approach ensures clarity, fosters engagement, and meets the unique needs of each stakeholder, thereby enhancing collaboration and support.
References
* "Effective Communication Skills for Scientific and Technical Professionals," Harry E. Chambers.
* "Managing Stakeholders as Clients: Sponsorship, Partnership, Leadership, and Citizenship," Mario Henrique Trentim.

NEW QUESTION # 235
......

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