Updated ISM CORe Dumps – Check Free CORe Exam Dumps (2026) [Q97-Q119]

Q97. A supply manager Is leading a project to implement a change from a common grade material to a newer grade that improves performance and achieves cost savings. The project team includes representatives from engineering, quality, sales, product development, and cost accounting. Two suppliers capable of producing the new material have been identified and proposals have been received. The project is now approaching the final implementation phase. Which of the following should be the NEXT step in the process?

Conduct a phase-out meeting with all stakeholders and determine which supplier will be awarded the business

Have each stakeholder report its position on the success criteria established at the initial project meeting

Prepare purchase requisitions with estimated volumes for the two suppliers

Submit a report to senior management explaining the status of the project with an expected completion date

Q98. A company had sales revenue of $500,000 for 2013. During 2013, the company incurred operating expenses of $40,000 and interest expenses of $60,000. The income before taxes was $220,000. What was Cost of Goods Sold (COGS) for the year 2013?

$180,000

$200,000

$220,000

$240,000

Q99. A supply management department for a manufacturing organization receives performance reports from four suppliers and evaluates the performance of these suppliers using the weighted-point approach. Factors related to employee resources, such as worker safety and worker dignity, are used to break any ties. A higher score denotes a more favorable rating.
CategoryWeightSupplier A ScoreSupplier B ScoreSupplier C ScoreSupplier D Score Cost40%3454 Workers’ compensation program20%5344 Support for employee resource groups20%5335 Customer satisfaction20%4444 Total100% Which of these suppliers can be considered the BEST performer of the four?

Supplier C

Supplier B

Supplier A

Supplier D

Q100. FGH, Inc. has purchased components from Supplier A for many years. The supplier’s performance has been very good, with reliable deliveries and consistently high quality. As contract renewal approaches, Supplier A informs FGH’s supply manager that a significant price increase is anticipated, based primarily on the costs of building a new production facility. The supply manager has been directed to negotiate a new contract with Supplier A only if it agrees to maintain current pricing. Which of the following is the BEST way for the supply manager to prepare for negotiations with Supplier A?

Determine if the parts made by Supplier A can be produced elsewhere

Discuss alternate product designs with engineering

Enlist FGH’s executive management to participate in negotiations

Research into whether Supplier A’s recent expansion costs are reasonable

Q101. At what point in the development of a category strategy should spend review occur?

After key internal stakeholders agree on sourcing priorities

After development of the sourcing team

After presentation of the strategy to senior management

During validation of the savings or contribution

Q102. A college bookstore sells textbooks at a 15 percent discount to professors while successfully selling the same books at full price to students. What conditions are present so that the bookstore can charge different prices? (Select all that apply.)

The bookstore has few close competitors.

Professors are unable to resell books.

The demand for the books is elastic.

The books can also be purchased online.

The bookstore is owned by the college where it sells books.

Q103. A supply manager Is conducting negotiations with a supplier. The supplier states that it cannot offer a lower price because the product under negotiation is covered by a government contract. In this situation, the supply manager should

offer to reduce the order quantity

negotiate the other terms and conditions, and return to the issue of price at a later time

conclude that this is in fact the best price that the supplier can legally offer

require the supplier to provide specifics on the government contract restrictions

Q104. A U.S. firm receives several blds for a piece of specialized testing equipment. A supplier from Japan quotes a price of 360,000 Yen. If the current exchange rate is 90 Yen per U.S. Dollar, what will the price be in U.S.
dollars?

$3,240

$40,000

$32,400

$4,000

Q105. The types of suppliers MOST suited for regular business reviews are those providing

bottleneck and strategic items

bottleneck and non-critical items

strategic and leveraged item

leveraged and non-critical items

Q106. Which of the following is MOST appropriate for review by an audit committee?

Paperwork needed to remain compliant with regulations

Whether policy changes will optimize profits

The existence of appropriate internal controls

Forecasted sales and revenues

Q107. ABC, Inc. Is a large accounting partnership with member firms In 120 countries. ABC’s international sourcing team is responsible for establishing contracts with the company’s suppliers around the world.
While the quality of negotiated and executed contracts remains impeccable, the sourcing team has received numerous complaints about delays in processing contracts. The delays primarily occur at the contract execution stage, when the assigned sourcing specialist must obtain internal approvals from multiple parties, including international suppliers and member firms. Because of these delays, suppliers must wait until a contract is duly executed before they can start providing services, which has a significant impact on the member firms’ commitments to their clients.
Which of the following is the BEST course of action for the sourcing team to take to address this issue?

Allow suppliers to start the implementation of services as soon as they reach an agreement in principle, and formalize the paperwork later on

Subscribe to a digital signature service and execute contracts online, rather than sending the paperwork overseas via courier

Hire additional sourcing staff to manage the volume and reduce delays, and have the member firms cover the extra budget

Allow member firms to execute contracts directly with their suppliers, in order to avoid processing delays

Q108. A government is considering issuing a fixed number of permits allowing firms to pollute. When would this system fail to reduce pollution?

During an economic expansion

When the price for a unit of pollution is too high

When the system is applied to all industries

If the government issued too many pollution permits

Q109. After a bid process concludes and an award is made, there should be a debriefing process that involves

advising the unsuccessful bidders to resubmit proposals

informing unsuccessful bidders they were not awarded the contract and notifying end users of the successful supplier

advising the successful bidder to review the contract terms

informing end users of the specific pricing provided by all of the bidders and notifying third party organizations of the unsuccessful bidders

Q110. For the past two years, XYZ Company has issued Requests for Proposals (RFPs) for event registration mobile apps to be used for the firm’s annual conference. In both instances, XYZ ended up using an app developed in-house. While the internally-developed app has met XYZ’s requirements, the company believes it may be outdated in comparison with those provided by the suppliers that have submitted responses in the past. XYZ issues a new RFP to assess the suppliers’ current capabilities. Responses are requested within four weeks from the date of the RFP.
Which of the following is the GREATEST risk that XYZ may encounter with this strategy?

Suppliers may decline to respond because XYZ has issued RFPs twice in the past without selecting anyone.

Procuring the app from a third party when it was not purchased from a supplier during the previous years could result in the firm exceeding its budget.

XYZ may be forced to accept a proposal that does not meet its business requirements.

XYZ’s timetable might place an unreasonable burden on the ability of suppliers to prepare and submit responses.

Q111. A state university is looking to purchase equipment to scan books and manuscripts into a digital format.
Several variations of this equipment exist in the marketplace, and the university has not decided which format is best for their needs. There is also a possibility that the cost for additional storage requirements will be shared with the state. Given this situation, which of the following is the FIRST course of action the university should take?

Issue a Request for Information (RFI)

Negotiate an agreement with the state government to share storage costs

Issue a Request for Proposal (RFP)

Conduct a joint suppliers’ conference with the state government

Q112. A supply management department is looking to standardize purchases across the entire organization and leverage spend with fewer suppliers. Which of the following will be MOST useful for determining historical baseline costs?

Spend analysis

Kraljic matrix

Delphi method

Box-Jenkins method

Q113. The owner of a t-shirt store on a beach sells 200 shirts per month in the summer for a price of $15.00. During the winter months, the owner reduces the price to $9.00 and sells 100
shirts per month. The store must be leased in one-year increments at $400 per month in rent. The cost of labor, materials, and utilities are an additional $600 a month. Should the store remain open during the winter months?

No, the store should shut down during the winter months.

No, the store should shut down completely.

Yes, the store should remain open during the winter months.

Yes, the store should remain open but should lower prices to $6.00 during the winter months.

Q114. A U.S.-based supply manager wants to reduce the number of defective parts arriving from an outsourced supplier located in Malaysia. Which of the following is MOST likely to help achieve this goal?

COPC 2000

Six Sigma

Sarbanes-Oxley

Lean manufacturing

Q115. Which of the following companies could expect to have the fewest competitors? (Select all that apply.)

Airline

Automobile manufacturer

Real estate agency

Restaurant

Tutoring service for grade school math

Q116. Exhibit:

A recent graduate is interested in investing in a stock. This individual is particularly interested in retail companies and has been following two companies closely for the past year. In order to decide which stock to invest in, this individual decides to compare monthly returns for both companies over the past year. A table of descriptive statistics is given below. What can be said about Company A regarding risk and average returns in relation to Company B?

Company A has higher average monthly returns and is relatively more risky than Company B.

Company A has higher average monthly returns and is relatively less risky than Company

Company A has lower average monthly returns and is relatively more risky than Company B.

Company A has lower average monthly returns and is relatively less risky than Company B.

Q117. Developing a category management plan can BEST be accomplished by

speaking with a supplier account manager

searching the internet and obtaining articles about the category

collecting spend data and business strategy from stakeholders

meeting with management to learn more about the category

Q118. Which of the following scenarios is an example of a Type I error?

A null hypothesis which is true is rejected.

A null hypothesis which is true is not rejected.

A null hypothesis which is false is rejected.

A null hypothesis which is false is not rejected.

Q119. A weight loss clinic had 1,000 clients last year. The distribution of the changes in clients’ weights is shown below.

Which of the following Excel formulas would correctly calculate the 95% confidence interval for the true average change in weight? Please note that the formula for calculating confidence intervals in Excel is =CONFIDENCE.NORM(alpha, standard_dev, size).