Last Updated: Jul 17, 2026
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| Section | Objectives |
|---|---|
| Topic 1: Supply Management Core Knowledge | - Category management principles - Supply chain integration and operations - Procurement and sourcing fundamentals |
| Topic 2: Compliance and Performance Management | - Supplier performance measurement - Continuous improvement practices - Ethics and compliance in procurement |
| Topic 3: Leadership and Business Acumen | - Financial and business analysis - Leadership in supply management - Risk management and decision-making |
| Topic 4: Sourcing and Category Strategy | - Supplier evaluation and selection - Strategic sourcing processes - Contracting and negotiation strategies |
1. Performance in commodity procurement can be determined by?
A) Comparing weekly purchases to monthly purchases.
B) Monitoring the finance department supply management paperwork.
C) Reviewing coverage and commitment limits.
D) Comparing weekly purchases to the actual buying price, including the cost of delivery.
2. Which of the following is NOT one of the benefits of a well constructed supply management policy?
A) Steps in a process are reduced.
B) Is critical for supplier's certification.
C) Enables new supply management employees to rapidly learn operations.
D) Ensures consistency in operations.
3. Your company designs and builds utility outbuildings. Your supplier who provides the wooden roof trusses has been having difficult times financially because of other buyers concerns they were too small to keep up with their volume. You have never had any problem with receiving on time deliveries what is your best course of action? You know their management is top notch.
A) Offer to provide advanced sales techniques and other management support to their company.
B) Perform an audit of the other customers concerns.
C) Offer to provide the financing through a loan.
D) Order the next quarters worth of project trusses in advance providing a cash infusion for the supplier.
4. The most cost effective way to dispose of inventory is?
A) Landfill disposal of excess supply management material.
B) Recycling through recycle entities.
C) Sell it back to the supplier.
D) Donation of excess supply management material.
5. Overhead costs are associated with the operation of the organization. Overhead costs are typically based on a pooling approach called?
A) Allocation of resources of the organization.
B) Allotment of resources of the organization.
C) Target costs of resources of the organization.
D) Interest expense of resources of the organization.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: A |
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