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ISM CPSM Bridge Sample Questions:

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

2. Which of the following is not one of components of organizational strategy?

A) Corporate strategies
B) Business unit strategies
C) Supply management strategies
D) Competitor strategies

3. Supply management procedures are sets of guidelines that follow from policies. Typical supply management procedures include all of the following EXCEPT.

A) Conditions for adding suppliers to the approved supplier list.
B) Process for handling rejected material returns.
C) Systems for standard purchase order preparation.
D) Determining the level of social responsibility.

4. Supply management functions are increasingly important in relation to organizational budgeting, objectives, staffing, and policy. Supply management professionals must include the elements of organizational composition which include all of the following EXCEPT.

A) Policy development processes which represent a broad statement of the direction of the organization.
B) Staffing, which includes effective deployment of staff.
C) Objectives, which represent organizational success factors.
D) Financial, which includes all assets, depreciation, and inventory on order and on hand.

5. Preventing an adversarial atmosphere in a negotiation session is called?

A) Maximum supplier cooperation
B) Team customer service towards negotiation
C) Supplier negotiation session
D) Proper negotiation session

Solutions: