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ISM CPSM Bridge Sample Questions:

1. The ISM glossary defines an item that will never be used or sold at full value as _______________ inventory.

A) Recyclable supply management material.
B) Surplus supply management material.
C) Damaged supply management material.
D) Obsolete supply management material.

2. During an organizational supply management audit an auditor notices your written policy states that in your recycling program excess motors will be shipped to the supplier for a return credit. It is determined workers on the floor had been placing the motors in a recycling bin and for city recycling pickup. Which result is MOST likely to have an impact on the subsequent audit?

A) Benchmarking like organizations policies for recycling.
B) Review of internal training processes.
C) Discipline of the employees for not adhering to policy.
D) Development of a remediation delineating actions to remedy the deficiency.

3. A party that arranges for export and import movement of goods for shippers and consignees is a?

A) Freight transporter for import and export.
B) Freight managing LLC for import and export.
C) Foreign freight forwarder for import and export.
D) Freight consigner for import and export.

4. Shipping damage which is not easy to detect upon the time of delivery is called?

A) Post delivery damage during transit.
B) Shipper damages during transit.
C) Latent damage during transit.
D) Reportable damage during transit.

5. Which of the following price strategies would one use if they allow the seller to charge an hourly rate for labor plus the cost of materials and allowable expenses?

A) Time and material contracts
B) Loss leader pricing
C) Market based approach
D) Market demand pricing

Solutions: