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Exam Name: C.P.M. Module 2: Supply Environment
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630-006 Bootcamp Total Q&A: 285 Questions and Answers
Last Update: 2014-06-03
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Exam Name: Certified Professional in Supply Management (CPSM)
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CPSM Exam Cost Total Q&A: 128 Questions and Answers
Last Update: 2014-06-03
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NO.1 Which of the following options are key actions that senior management should take into account when
establishing a purchasing department?
A. Select a purchasing system
B. Develop list of suppliers
C. Hire qualified buyers
D. Establish a policies authorizing purchasing authority
Answer: D
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NO.2 If a supplier's level of quality was unsatisfactory on past orders and the level of quality on current
orders is critical, which of the following options would be the BEST way to handle the situation?
A. Timely inspection by the buyer's company at the supplier's plant
B. Requiring the supplier to supply extra products to cover rejects
C. Require 100% inspection before the products leave the warehouse of the order by the buyer's
company's quality control department
D. Label "Quality of Material is Critical" on the purchase order
Answer: A
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NO.3 Which of the following procedures for dealing with businesses that have social or economical
disadvantages, if a purchasing manager considers: (Choose all that apply)
A. That the staff of such businesses may have had limited exposure to technical contract language
B. That exceptions may be needed to accommodate faster payment of invoices from such businesses
C. That goods or services of lower than usual quality may be accepted from such businesses
D. That such businesses may need information on the bidding process
Answer: A, C, D
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NO.4 Which of the following approaches focuses on cooperative rather than adversarial relationships with
suppliers?
A. single sourcing
B. cross-functional teams
C. supply base management
D. supplier partnerships
Answer: D
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NO.5 With which of the following would purchasing management be MOST concerned in day-to-day
operational control in a manufacturing firm?
A. labor utilization variance
B. materials utilization variance
C. labor cost variance
D. materials cost variance
Answer: D
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NO.6 Which statement about setting negotiating objectives is FALSE?
A. It should be defined with sufficient specificity to permit measurements.
B. It should be established for each issue or condition to be negotiated.
C. They should establish a supplier's strengths and avoid reference to its weaknesses.
D. It should be based on databases derived from cooperative efforts of purchasing,
production, and engineering.
Answer: C
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NO.7 You work as a buyer at KillTest .com. A piece of capital equipment is designed and specified so as to
force the purchasing department into a sole supplier situation. You still want to affect the procurement
process. Which of the following support items from the sole supplier would you negotiate? (Choose all
that apply)
A. Technical documentation, including data sheets, performance specs, maintenance and operating
manuals, supplier-furnished training programs, and full supplier documentation
B. The initial provisioning of high-risk spare parts for start-up and a one-year period thereafter
C. A promise to maintain equipment on an annual basis by the manufacturer or its authorized service
agent
D. A determination of whether equipment or services are taxable or tax-exempt
Answer: A, B, C
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NO.8 .Which of the following BEST defines negotiations?
A. reaching an agreement through discussion
B. maximizing one's position over one's opponent
C. reaching an agreement through competitive bidding
D. ensuring that the terms and conditions of a contract are met
Answer: A
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