Real ISM CPSMB practice exam questions for easy pass!
Updated: Jun 02, 2026
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1. As the supply management professional executes strategic sourcing plans and is performing a market analysis and risk benefit analysis, using the risk benefit quadrant formula a factor which is TACTICAL would have which level of risk and benefit?
A) High risk, low benefit
B) High risk, high benefit
C) Low risk, high benefit
D) Low risk, low benefit
2. When determining the optimum usage of capacity a supply manager determines they want to understand how much their process deviates from a competitors. Which measure of forecast accuracy would be the
BEST fit?
A) Standard error rates of the distribution.
B) All of the above.
C) The mean percentage error or forecast error.
D) Mean square error of the square of errors.
3. A key section of the business plan deals with product pricing structure. The organization may use multiple pricing strategies based on each business unit, customer segmentation, and demand what is the main decision related to product price structure?
A) Whether to use a market based approach or cost approach?
B) Whether to use Time & Materials contracts?
C) Whether to use loss leader pricing?
D) Whether to use market demand pricing?
4. Which of the following is not one of components of organizational strategy?
A) Business unit strategies
B) Supply management strategies
C) Corporate strategies
D) Competitor strategies
5. In order to achieve the optimal structure of the supply management environment, which best practice would the supply management professional use to compare the organization to other organizations and involves inventing, improvising, and learning each day?
A) Reengineering
B) Competitive intelligence
C) Benchmarking
D) Business intelligence
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: C |
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