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ISM LEAD Exam Questions
- Topic 1: Strategy Development: This section covers creating and carrying out long-term supply management plans to meet organisational objectives.
- Topic 2: Stakeholder Engagement: The section covers cooperating and communicating effectively with internal and external stakeholders impacted by supply chain choices.
- Topic 3: People Development and Coaching: In this section, focus is on nurturing talent and fostering skills growth within the supply management team.
- Topic 4: Systems Capability and Technology: This domain covers developing talent and expanding skill sets among the supply management group members.
- Topic 5: Risk and Compliance: This domain covers identifying, assessing, and mitigating potential threats while ensuring adherence to regulations in supply management.
- Topic 6: Corporate Social Responsibility and Ethics: This domain covers incorporating ethical and sustainable practices into decision-making and supply chain processes.
Free ISM LEAD Exam Actual Questions
Note: Premium Questions for LEAD were last updated On Jun. 22, 2025 (see below)
Which of the following integrates various functions within an organization, including forecasting, materials management and purchasing?
Enterprise Resource Planning (ERP) systems integrate various functions within an organization, including forecasting, materials management, and purchasing. ERP systems provide a unified platform that allows different departments to share data and processes, facilitating better coordination and decision-making. This integration helps streamline operations, improve efficiency, and enhance overall organizational performance by providing real-time data and analytics.
O'Leary, D. E. (2000). Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk. Cambridge University Press.
Monk, E., & Wagner, B. (2012). Concepts in Enterprise Resource Planning. Cengage Learning.
An organization institutes a program whereby employees visit a local high school to meet with students and introduce them to careers in business. This firm is likely to be one that has a
An organization that institutes a program for employees to visit a local high school to introduce students to careers in business likely has a strong commitment to social responsibility.
Social Responsibility: This initiative reflects the company's commitment to giving back to the community, promoting education, and supporting the development of future talent.
Community Engagement: Engaging with local schools and students demonstrates the company's dedication to social responsibility by contributing to the social and educational development of the community.
Carroll, A.B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons.
Freeman, R.E., Harrison, J.S., & Wicks, A.C. (2007). Managing for Stakeholders: Survival, Reputation, and Success. Yale University Press.
In global sourcing, for which of the following areas is verifying compliance likely to be MOST difficult?
Verifying compliance in the area of social responsibility is likely to be the most difficult in global sourcing. Ensuring that suppliers adhere to social responsibility standards, such as fair labor practices, human rights, and ethical sourcing, can be challenging due to varying regulations, cultural differences, and lack of transparency. Leadership and transformation management documents emphasize the complexities of managing social responsibility in global supply chains. Reference highlight that social audits, certifications, and continuous monitoring are essential but can be resource-intensive and difficult to enforce consistently across different regions.
DEF Company acquires MNO, Incorporated. The new firm's chief procurement officer (CPO) is tasked with consolidating duplicate components under one supplier for the lowest total cost. The CPO plans to use the firms' combined cognitive procurement system to complete this task. Which of the following will this system MOST likely yield in order to aid the CPO?
Using the firms' combined cognitive procurement system, the CPO is most likely to yield information on the price, quality, performance, and reliability of the components and the suppliers. This data is crucial for consolidating duplicate components under one supplier for the lowest total cost.
Cognitive Procurement Systems: These systems utilize artificial intelligence and data analytics to provide comprehensive insights into procurement activities. They help in assessing various parameters such as cost, quality, and supplier performance.
Decision-Making: Having detailed information on price, quality, performance, and reliability allows the CPO to make informed decisions about which suppliers to consolidate, ensuring that the best overall value is achieved.
Optimization: This approach helps in optimizing the supply chain by selecting suppliers that offer the best combination of cost efficiency and reliability, ultimately reducing total procurement costs.
Handfield, R.B., & Nichols, E.L. (1999). Introduction to Supply Chain Management. Prentice Hall.
Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
Which of the following requires a working knowledge of payback and net present value?
A working knowledge of payback and net present value (NPV) is required for managing a capital expenditures budget. These financial concepts are essential for evaluating the profitability and financial viability of capital projects. Leadership and transformation management documents emphasize the importance of financial acumen in making informed decisions about significant investments. Understanding payback periods and NPV helps supply managers assess the return on investment and make strategic decisions that align with the organization's long-term goals. Reference highlight that proficiency in these financial tools is critical for managing capital expenditures effectively.
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