Online Access Free LEAD Practice Test

A supply manager conducts a risk assessment of the company's top five suppliers. One of these suppliers-a sole source of an integral component-has just one database location and no cloud storage. Any calamity could put supply of the component at risk. In this situation, which of the following is the BEST long-term course of action for the supply manager to take?

• A.Work with engineering to reduce the component's uniqueness and allow for alternate sources
• B.Revise the contract to require the supplier to obtain a backup database facility
• C.Analyze the feasibility of insourcing the component
• D.Collaborate with IT to offer available database capacity at one of the firm's locations

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?

• A.The financial strength of the suppliers providing the components
• B.The level of risk posed by each supplier based on location and disaster recovery plans
• C.The demand for the components for both DEF and MNO
• D.The price, quality, performance and reliability of the components and the suppliers

The chief procurement officer (CPO) for a large municipal government obtains funding for a new e-procurement system. After the system has been operational for a year, the city council's finance committee requests a status report, with emphasis on whether or not the system has realized projected benefits. Future funding for e-procurement depends on whether the council is satisfied with progress. Though the system has yielded many positive results, savings have not yet met expectations. Given this situation, which of the following is the BEST approach for the CPO to take to address the council's concerns?

• A.Revise organizational procedures for better system reporting
• B.Document planned and achieved process improvements
• C.Compare the system's performance to the service level agreement
• D.Provide detailed data on cost savings per order

A company finds that its overall customer base is becoming more diverse. The firm is concerned about the lack of diversity in its supply base and the potential for reputational risk should this lack of supplier diversity become public knowledge. Given this situation, which of the following is the BEST course of action for the firm to take?

• A.Increase the number of women-owned suppliers in supply base
• B.Promote diversity within supply management staff
• C.Develop a company-wide social responsibility program
• D.Require each current supplier to have a diverse workforce

A supply management department experiences a high number of sexual harassment complaints, resulting in the dismissal of the department manager. The new manager is tasked with improving discipline and creating a more positive, productive environment. Which of the following is the MOST effective course action for the new manager to take?

• A.Post examples of inappropriate employee behaviors
• B.Conduct a discussion of sexual harassment with a lunchtime learning group
• C.Survey the department on the effectiveness of the current sexual harassment policy
• D.Meet with human resources to discuss implementation of a zero-tolerance policy