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ISM LEAD Exam Syllabus Topics:

Topic
Details

Topic 1

Corporate Social Responsibility and Ethics: This domain covers incorporating ethical and sustainable practices into decision-making and supply chain processes.

Topic 2

Risk and Compliance: This domain covers identifying, assessing, and mitigating potential threats while ensuring adherence to regulations in supply management.

Topic 3

Stakeholder Engagement: The section covers cooperating and communicating effectively with internal and external stakeholders impacted by supply chain choices.

Topic 4

Systems Capability and Technology: This domain covers developing talent and expanding skill sets among the supply management group members.

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ISM Leadership and Transformation in Supply Management Sample Questions (Q143-Q148):

NEW QUESTION # 143
A training program for supply management staff has yielded positive results in several key areas, including enhanced supplier collaboration, lower inventory carrying costs, and better response to changes in forecast demands. The supply manager believes elements of such training could make cross-functional teams more effective if representatives from other departments were involved. This would require approval from top management. Which of the following is MOST likely to help the supply manager gain top management's support?

A. Alignment with organizational objectives
B. Detailed graphics and data points
C. A champion in an allied department
D. A comparison with best-in-class examples

Answer: A

Explanation:
To gain top management's support for expanding the training program to include representatives from other departments, the supply manager should align the proposal with organizational objectives. Demonstrating how the training program supports the broader goals of the organization, such as enhancing cross-functional collaboration, improving efficiency, and driving innovation, will make a compelling case for approval. Leadership and transformation management documents stress the importance of aligning initiatives with strategic objectives to secure buy-in from top management. Reference emphasize that aligning training programs with organizational goals ensures that the proposed changes are seen as integral to the company's success and strategic direction.
Top of Form
Bottom of Form

NEW QUESTION # 144
A chemical company sets a standard cost for a key component at $5 per unit. The firm values inventory at standard cost. The firm plans to purchase 10,000 units during the month of March, but at the end of the month, they realize they actually purchased 12,000 units, at a cost of $4.50 per unit.
What is the firm's Purchase Price Variance (PPV) for the month of March?

A. ($4,000.00)
B. $6,000.00
C. ($6,000.00)
D. $4,000.00

Answer: C

Explanation:
To calculate the Purchase Price Variance (PPV), use the following formula:
PPV=(Actual Price-Standard Price)×Actual Quantity ext{PPV} = ( ext{Actual Price} - ext{Standard Price}) imes ext{Actual Quantity}PPV=(Actual Price-Standard Price)×Actual Quantity Given:
Standard Price = $5.00 per unit
Actual Price = $4.50 per unit
Actual Quantity = 12,000 units
ext{PPV} = ($4.50 - $5.00) imes 12,000 ext{PPV} = (-$0.50) imes 12,000 ext{PPV} = -$6,000.00 The negative sign indicates a favorable variance (cost savings). Hence, the PPV for the month of March is ($6,000.00). Leadership and transformation management documents emphasize the importance of variance analysis in controlling procurement costs and ensuring budget compliance. Reference highlight that monitoring PPV helps identify cost-saving opportunities and improve financial performance.

NEW QUESTION # 145
A firm is considering an expansion into a very profitable market. Supporting the production requirements of this potential supply chain will critically hamper current information technology (IT) business resources and capabilities. The company does not wish to miss profit opportunities but is uncertain about the sustainability of the new supply chain, given the market's instability. Which of the following is the BEST approach the company can take in this situation?

A. Delay the start of operations in the new market until the current IT infrastructure is updated
B. Purchase cloud computing services that bridge the IT capabilities gap
C. Consider outsourcing the new supply chain
D. Conduct an assessment and upgrade of the current IT infrastructure

Answer: C

Explanation:
Given the uncertainty about the sustainability of the new supply chain and the potential strain on current IT resources, the best approach is to consider outsourcing the new supply chain. Outsourcing can provide the necessary expertise and infrastructure without overburdening the company's existing IT resources. Leadership and transformation management documents highlight the strategic use of outsourcing to manage risks and leverage external capabilities. This approach allows the firm to capitalize on the profitable market opportunity while mitigating the risks associated with market instability and IT resource constraints. Reference also point to the importance of flexibility and adaptability in supply chain management, which can be achieved through strategic partnerships with third-party providers.

NEW QUESTION # 146
An organization wishes to implement principles of world-class logistics management. Which of the following is the MOST appropriate type of goal for integrating such activities?

A. Divisional
B. Functional
C. Strategic
D. Management

Answer: C

Explanation:
Goal Setting in World-Class Logistics Management:
Integrating world-class logistics involves aligning logistics activities with the overall strategic objectives of the organization.
Strategic goals ensure that logistics functions contribute to the broader long-term objectives and competitive positioning of the company.
Types of Goals:
Divisional Goals: Focus on specific divisions, might lack integration with overall company strategy.
Functional Goals: Concern specific functions within logistics, but may not align with broader company strategy.
Management Goals: Directed towards managerial performance and oversight.
Strategic Goals: Encompass company-wide objectives, ensuring all logistics activities support the long-term vision and competitive advantage.
Conclusion: Setting strategic goals ensures that logistics management aligns with the company's overall strategy, driving long-term success and competitiveness.
Reference:
"Strategic Logistics Management" by Donald Bowersox, David Closs, and M. Bixby Cooper Best practices in logistics management from the Council of Supply Chain Management Professionals (CSCMP)

NEW QUESTION # 147
When evaluating the performance of supply management employees, which of the following types of input will be MOST comprehensive?

A. Stakeholder input
B. 360 degree input
C. Customer input
D. Peer input

Answer: B

Explanation:
Types of Input for Performance Evaluation:
Customer Input: Feedback from external customers or clients.
Peer Input: Feedback from colleagues at the same level within the organization.
360 Degree Input: Comprehensive feedback collected from an employee's subordinates, peers, and supervisors, as well as a self-evaluation.
Stakeholder Input: Feedback from all parties interested in or affected by the employee's performance.
Comprehensiveness of 360 Degree Input:
This method includes a full spectrum of feedback sources, covering supervisors (managerial perspective), peers (collegial perspective), subordinates (leadership perspective), and self-assessment (personal perspective).
This approach ensures a holistic view of the employee's performance, identifying strengths and areas for improvement from multiple viewpoints.
Conclusion: The 360 degree input is the most comprehensive type of feedback as it encompasses evaluations from all levels of interaction, providing a well-rounded understanding of an employee's performance.
Reference:
Harvard Business Review articles on performance management
Society for Human Resource Management (SHRM) guidelines on performance evaluation

NEW QUESTION # 148
......

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