ISM LEAD Dumps (V8.02) – Help You Ace the Leadership and Transformation in Supply Management (LEAD) Exam Confidently

1. A supply manager is scheduled to make a presentation at an upcoming management conference. The supply manager wants to present supply management as a key team member and an important contributor.

Which of the following is the BEST approach for the supply manager to take in order to get a favorable reception?

2. Matrix structures and dual reporting systems can BEST be described as related to which of the following aspects of organizational hierarchy design?

3. XYZ, Inc. is a large manufacturing firm. An internal stakeholder asks XYZ’s supply manager to assist with the sourcing of a temporary labor provider for short-term staffing needs. The stakeholder identifies a number of temporary labor agencies that XYZ has worked with in the past. One of these agencies employs the supply manager's spouse as its vice president of marketing.

Which of the following is TRUE in this situation?

4. Jones is a highly motivated leader who exceeds all standards for excellence. However, Jones has also been criticized for micro-managing employees, taking over tasks, giving employees little feedback or direction, and cutting comers during busy periods in order to meet production goals.

Jones is MOST likely which of the following types of leaders?

5. In a closed-loop recycling process, waste material is

6. A company finds that its overall customer base is becoming more diverse. The firm is concerned about the lack of diversity in its supply base and the potential for reputational risk should this lack of supplier diversity become public knowledge.

Given this situation, which of the following is the BEST course of action for the firm to take?

7. DEF Company acquires MNO, Incorporated. The new firm’s chief procurement officer (CPO) is tasked with consolidating duplicate components under one supplier for the lowest total cost. The CPO plans to use the firms’ combined cognitive procurement system to complete this task.

Which of the following will this system MOST likely yield in order to aid the CPO?

8. A supply management department experiences a high number of sexual harassment complaints, resulting in the dismissal of the department manager. The new manager is tasked with improving discipline and creating a more positive, productive environment.

Which of the following is the MOST effective course action for the new manager to take?

9. Under which of the following circumstances is the effectiveness of a project team MOST likely to be enhanced?

10. Supply management can track supplier performance, send alerts on important dates and generate reports for compliance officers through which of the following?

11. The chief procurement officer (CPO) for a large municipal government obtains funding for a new e-procurement system. After the system has been operational for a year, the city council's finance committee requests a status report, with emphasis on whether or not the system has realized projected benefits. Future funding for e-procurement depends on whether the council is satisfied with progress. Though the system has yielded many positive results, savings have not yet met expectations.

Given this situation, which of the following is the BEST approach for the CPO to take to address the council's concerns?

12. A supply manager meets with a group of external auditors presenting a draft of their report on the supply management function.

Which of these findings should be of GREATEST concern to the supply manager?

13. A supply management department is focused on reducing short- and long-term costs. However, the reporting of these cost reductions has been inconsistent. Some are reported as cost savings but not cost avoidance, while others are not documented at all.

In preparing performance evaluation measures for the coming year, how can the department BEST address these concerns?

14. A manufacturing company has been experiencing a number of human resource problems. Many employees feel they are underutilized given their skill sets. The firm is concerned that if it loses some key leaders, it will be at risk. The company is looking to attract and retain more employees that embody the company's values.

Given all these factors, which of the following is the BEST course of action for the firm to take?

15. BCD, Inc. is a worldwide household appliance maker that is distinguished in the marketplace by its reputation for customer service. In recent months, BCD has found its competitive position slipping due to increased order fulfillment time and slower response time to distributor requests for parts. Inquiries at the company's local facilities suggest that the problem is a combination of unreliable delivery and erratic production scheduling.

Given this situation, which of the following should BCD do FIRST?

16. A junior buyer joins a procurement organization and spends the first month observing a senior buyer conduct various sourcing events. This is an example of what type of training delivery method?

17. A water bottling company pays a third party $0.05 each for its tamper-evident bottle closures. This cost can BEST be described as

18. A government entity emphasizes that preference be given to businesses owned by individuals with disabilities.

This organization’s actions can be BEST characterized as

19. UVW, Inc. and Supplier Y have enjoyed a healthy long-term relationship. The two organizations routinely share information and jointly support continuous improvement.

In recent months, UVW and Supplier Y's sales, supply management, and engineering teams have been co-developing a new product that would position them uniquely in their market segment. Price and terms have been agreed upon, and the contract is now in its final stages. However, when UVW's team presents the finalized deal to its senior management, they express displeasure with Supplier Y, and the deal is put on hold until further evaluation.

Which of the following is the MOST likely reason this occurred?

20. A supply manager attends a professional association conference and meets with several supply management colleagues working in related industries. The discussion turns to specific suppliers they have in common, including prices and negotiation experiences.

Which of the following is the MOST important reason the supply manager should refrain from this discussion?

21. Which of the following is considered a "right-to-know" requirement concerning hazardous substances?

22. JKL, Inc. has traditionally sourced most of its raw materials and components from long-established domestic suppliers. Lately, however, the firm has had a growing reliance on off-shore suppliers. JKL's supply manager is concerned that this will change how risks are monitored and managed.

Which of the following should the supply manager do FIRST?

23. An organization institutes a program whereby employees visit a local high school to meet with students and introduce them to careers in business. This firm is likely to be one that has a

24. A manufacturing company wants to do a better job of tracking prices and evaluating trends. It wishes to employ an index within contracts to determine yearly increases or decreases.

In this situation, the company would be BEST served by consulting which of the following?

25. Which of the following will MOST likely be impacted by the use of standard costs?

26. Which of the following is MOST critical in the creation of a succession plan?

27. XYZ is a US firm engaging in work on a project within a country identified as a war zone. The organization must purchase basic necessities such as bottled water for consumption in the office and out in the field. The local supplier of these commodities requires a surcharge for protection of the bottled water when it is delivered to the buying organization’s site.

Given this situation, which of the following is the BEST course of action for XYZ to take?

28. TUV, Inc. is acquiring Company A. As part of this acquisition, TUV’s supply management department must review all of Company A's current contracts and agreements to ascertain how smoothly they can be transferred to TUV.

Which of the following should be supply management's FIRST area of interest?

29. Which of the following requires that exporters certify electronic components are free of certain hazardous materials through the placement of a certification sticker on the unit?

30. XYZ Inc. is seeking to expand its certified diverse supply base. XYZ locates a small local supplier who is capable of providing qualified materials.

The ownership of the potential supplier is as follows:

20% ownership by a Caucasian female

25% ownership by a Caucasian male who is a veteran of the armed forces

24% ownership by an African-American female

31% ownership by an Caucasian male who is a disabled veteran of the armed forces

By incorporating this supplier into XYZ's supply plan, what type of diverse supplier would XYZ be supporting?

31. When evaluating the performance of supply management employees, which of the following types of input will be MOST comprehensive?

32. A supply manager for XYZ Inc. unknowingly sources a defective component, triggering a mass recall of the end product. One of XYZ's competitors has a representative appear on a television program, and the representative states that XYZ knowingly used the defective component, thus endangering the end customer.

Based on this information, on what grounds can XYZ seek legal action against this competitor?

33. A commodity manager and a salesperson from a major supplier have worked together for many years and have developed a cordial relationship. The salesperson sends the commodity manager two VIP tickets to a golf tournament.

Which of the following is the MOST appropriate way for the commodity manager to respond to this gift?

34. A supply management audit finds that sole source purchases have increased significantly due to the inexperience of the sourcing team, and that the waiving of competition is not justified in many cases. This has resulted in increased costs, as well as noncompliance with organizational policies requiring competitive solicitations.

Which of the following is the BEST way to rectify this situation?

35. A firm's supply manager issues a new set of procurement policies. Shortly thereafter, the supply manager learns that a former team leader is giving department employees instructions in conflict with updated policies. The former team leader is well-respected, and the department employees are beginning to question whether the supply manager's new policies are correct.

Which of the following is the FIRST step the supply manager should take to address this situation?

36. MNO, Inc. hires a contractor to renovate its office space. The firm pays a deposit for new countertops for the office’s cafeteria, but the contractor states that it will not be able to install the new countertops by the agreed upon date. The space needs to be completed on time for a planned grand opening event.

Which of the following is the BEST course of action for MNO to take?

37. A category manager for an electronics firm is tasked with building a strategy for wiring harnesses for the coming year.

Which of the following is the BEST course of action for the category manager to take?

38. Employee fraud or theft can MOST likely be uncovered through which of the following?

39. DEF, Inc. does not have a firm control of expenditures, and its global procurement department does not have a strong reputation within the organization. DEF asks the supply manager to centralize the procurement organization, engage stakeholders, and educate the organization on the value of procurement.

Which of the following should the supply manager do FIRST to ensure proper engagement and adherence to policies?

40. A company wants to employ an enterprise resource planning (ERP) system in order to coordinate an expanded global supply base for an innovative new product line. The company has never used such technology in the past.

Which of the following should be the FIRST step in implementing this project?

41. An employee with a disability has been having erratic, unexplained absences from work. The department supervisor counsels the employee, explaining that the absences are affecting productivity and performance. The employee responds by claiming protection under the U.S. Americans with Disabilities Act (ADA).

Which of the following is TRUE with regard to this situation?

42. Representatives from various departments at a research center meet to discuss the renovation of a lab. The firm’s supply manager has been asked to facilitate the discussion. In preparation, the supply manager outlines each department's role and asks for their priorities. This information is used to show the departments how much they have much in common and how they can assist each other in achieving their goals.

Which of the following tools is the supply manager using?

43. A supply manager for JKL, Inc. has been asked to develop a risk management plan for suppliers. The supply manager has identified the sources of risk and the probability of occurrence.

In order to develop a risk management process, the supply manager should NEXT

44. MNO, Inc. is a small global manufacturing company. The firm hires a new director of procurement to change the culture within the procurement team and focus on organization-wide key performance indicators (KPIs). The director suggests tracking the number of purchase orders created by each buyer across the organization to establish a baseline of activity. Smith, the department's senior buyer, is completely opposed to this KPI, and discovers that the other buyers are as well. Smith is concerned that many staff will resign if the director's initiative is instituted.

Given this situation, which of the following is the BEST course of action for Smith to take?

45. XYZ Company has expanded its operations into two new countries over the past six months. Due to the cultural differences within the new countries, the firm’s senior manager of procurement believes that qualitative key performance indicators (KPIs) need to be collected along with existing quantitative KPIs in order to accurately measure the success of the firm. XYZ has never used qualitative KPIs in the past.

Given this situation, which of the following should the senior manager do before proposing the qualitative KPIs to the executive team?

46. An organization wishes to implement principles of world-class logistics management.

Which of the following is the MOST appropriate type of goal for integrating such activities?

47. A tech company creates several innovative software programs for internal usage, including a program that streamlines supply chain management. To leverage its efforts, the company markets a version of this program. An important potential customer asks the supply manager about future enhancements to the software. While such updates are in progress, they have not been announced.

Given this situation, which of the following is the BEST course of action for the supply manager to take?

48. MNO Company's code of conduct severely restricts employee volunteer and charitable activities. MNO's supply manager is concerned that these restrictions could conflict with the ISM Principles of Sustainability and Social Responsibility.

What should the supply manager do to address these concerns?

49. Two gourmet food companies merge, and the combined entity attains an increase in its market share. The firm is considering an expansion of its product line, but material costs have risen and stock shortages are creating problems which need to be resolved before any expansion takes place. The firm’s supply managers find that no clear definition of responsibilities was outlined during the merger process for several commodity categories.

Which of the following did executive management fail to address?

50. A supply manager recently graduated from college is hired by a manufacturing organization as a buyer of industrial chemicals. The new supply manager has limited knowledge of chemicals and the marketplace.

In this situation, which of the following is the FIRST step the supply manager should take?

51. A chief procurement officer (CPO) notices that while buyers in regional offices work well together, tension mounts between the regional and global buying teams at the inception of any new global project. The CPO believes there is a need to improve trust and collaboration between the teams.

Which of the following is the FIRST step the CPO should take to improve the situation?

52. A firm's procurement department significantly exceeds its established goals two years in a row. Senior management is concerned the goals are too easy and asks the supply manager to determine if procurement team members are being adequately challenged.

Which of the following is the BEST course of action for the supply manager to take in order to assess the situation and provide a suitable answer to management?

53. An assistant contract administrator has been promoted to a newly-created contract management position in charge of sourcing a new product line. The position will work closely with other departments. The new manager is familiar with the firm's general procedures and organization but needs to expand skills in areas related to the increased responsibilities of the new position.

Which of the following will be MOST effective in this situation?

54. A supply manager is invited to present at a conference hosted by a professional organization. The conference is focused on supplier relationship management, risk and business intelligence. The supply manager intends to discuss how suppliers are classified using a mix of spend data, supplier audit results, supplier performance scorecards and contract status.

In this situation, which of the following should be the supply manager's GREATEST priority when making this presentation?

55. A buyer from BCD, Inc. meets with an industry peer at a professional conference and tells the peer that Supplier X provides a low quality product, when in fact Supplier X provides a high quality product. The buyer makes the statement in the hope of retaining BCD's competitive edge, but as result of the conversation, the peer removes Supplier X from participation in an upcoming RFP.

The buyer's statement can BEST be described as

56. A firm's human resources (HR) department would like to expand a successful training program but does not have funding to do so. The firm's supply manager believes that strategic sourcing of other HR spend categories can reduce costs to provide funding for the training program.

Which of the following influencing tactics should the supply manager use FIRST in order to convince HR to employ strategic sourcing?

57. A company is facing growing pressure to reduce costs by finding less expensive suppliers of raw materials offshore. However, the sourcing team has little experience with offshore suppliers.

To prepare the team, which of the following actions by the supply manager will have the GREATEST impact?

58. A supervisor in a chemical plant is distressed to find sexually-themed cartoons and photos displayed around employee workstations. However, no complaints have actually been filed by any employees.

Given this situation, which of the following is the BEST course of action for the supervisor to take?

59. In order to ensure that employee performance measures are aligned with the overall business model and the strategic direction of the organization, the supply management department's goals and objectives should be

60. A supply chain's stability, as well as its ability to continue business or recover from a major disruption, is BEST predicted by