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CPSM Supply Management Core Exam

Supply Management Core Exam

Last Update May 9, 2026
Total Questions : 312

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Questions 2

Which of the following is the MOST important benefit of implementing a contract management system?

Options:

Greater visibility for reverse auctions

Lower legal staff costs

Access to a cooperative purchasing group

Higher value-added activities

Discussion 0

Questions 3

MNO, Inc. has been one of XYZ Company's most valuable customers for a number of years. During a formal competitive bid event for a new product introduction, MNO becomes a supplier to XYZ. In this situation, which of the following should be of GREATEST concern to these organizations?

Options:

Progress reports

Conflict resolution

Reciprocal relationship

Customer feedback

Discussion 0

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Questions 4

A manufacturing company experiences an increase in returns due to product quality issues. A root cause analysis determines that the raw materials are the cause, not the production process. In order to resolve this issue and avoid similar problems in the future, the firm should FIRST do which of the following?

Options:

Require current suppliers to submit samples to determine if any materials do not meet standards

Stop production and halt any shipments until the problem is rectified

Find new suppliers for the raw materials

Offer replacement products from current inventory so that customers can get new products right away

Discussion 0

Questions 5

JKL, Inc. outsources its event services for large group training sessions and annual meetings. The contract requires the supplier to report program metrics, including cost savings. The savings method employed compares the hotel’s initial bid to the final negotiated price. The first report shows significant hard savings on the average nightly rate for hotel rooms. JKL's category manager would like to claim the hard savings. Which of the following BEST describes why the finance department should deny this request?

Options:

Unless there is a year-over-year reduction, the savings is cost avoidance.

Savings from outsourcing are subject to a higher level of governance.

Further data is required from the supplier to sufficiently support the savings.

Unless there is a year-over-year reduction, the savings is cost containment.

Discussion 0

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