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ISM Leadership and Transformation in Supply Management Sample Questions (Q98-Q103):

NEW QUESTION # 98
DEF, Inc. is finalizing a contract to have its head office refurbished. Within its budget of $1.2 million there is a general risk fund of $30,000. The building is old, and the electrical wiring drawings do not appear up to date. The total project bid from Supplier X is $1 million. This includes a fee of $20,000 for updating electrical wiring drawings and the contractors' risk fund of $100,000, half of which is for building-related issues, and half of which is for electrical issues.
DEF decides to assume the risk of electrical issues. What is the contract price paid to Supplier X?

A. $900,000
B. $930,000
C. 51,000,000
D. 5950,000

Answer: A

Explanation:
DEF, Inc. decides to assume the risk of electrical issues, which means they will deduct the portion of the contractor's risk fund allocated for electrical issues from the total project bid. Supplier X's total bid is $1 million, including $100,000 for the contractor's risk fund (half for building issues and half for electrical issues). Since DEF assumes the electrical risk, the contract price should be reduced by the $50,000 allocated for electrical issues:
Contract price=$1,000,000-$50,000=$950,000text{Contract price} = $1,000,000 - $50,000 = $950,000Contract price=$1,000,000-$50,000=$950,000 However, the question might have a typo. Correcting it for clarity:
The general risk fund of $30,000 mentioned is part of the $1.2 million budget and doesn't affect the contractor's bid directly. Therefore, the contract price paid to Supplier X should indeed be:
$1,000,000-$50,000=$950,000$1,000,000 - $50,000 = $950,000$1,000,000-$50,000=$950,000 Thus, the correct contract price, assuming no other deductions, is $950,000.

NEW QUESTION # 99
Which of the following is considered a "right-to-know" requirement concerning hazardous substances?

A. CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act)
B. HCS (Hazard Communication Standard)
C. RCRA (Resource Conservation and Recovery Act)
D. HMTA (Hazardous Material Transportation Act)

Answer: B

Explanation:
The Hazard Communication Standard (HCS) is considered a "right-to-know" requirement concerning hazardous substances.
HCS Overview: The HCS requires employers to inform employees about the hazards of chemicals they are exposed to in the workplace. This includes proper labeling, safety data sheets, and training on handling hazardous substances.
Right-to-Know: This standard ensures that employees have access to information regarding the hazardous chemicals they may encounter, promoting workplace safety and health.
Reference:
Occupational Safety and Health Administration (OSHA). (2012). Hazard Communication Standard (HCS). [Online]. Available: https://www.osha.gov/hazcom Goetsch, D.L. (2011). Occupational Safety and Health for Technologists, Engineers, and Managers. Prentice Hall.

NEW QUESTION # 100
A supply manager issues a purchase order to buy battery packs over the next three years. The battery packs will be used for multiple applications within the company. The first shipment is delivered in accordance with the quality standards and the delivery schedule outlined in the purchase order. Shortly thereafter, the supply manager is informed by an end user that the batteries from a second shipment are missing a component and are of no value. The supply manager immediately notifies the supplier it is in material breach and terminates the purchase order. The supply manager then informs the user departments of this decision.
Which of the following BEST describes what the supply manager did wrong (if anything) in this scenario?

A. The supply manager failed to research which user departments would be impacted by the decision to terminate the purchase order with the supplier.
B. The supply manager failed to validate that the batteries were defective.
C. The supply manager failed to communicate with the user departments to assess the impact of the problem before terminating the purchase order.
D. The supply manager acted properly.

Answer: C

Explanation:
In this scenario, the supply manager's primary mistake was failing to communicate with the user departments to assess the impact of the defective shipment before terminating the purchase order. Leadership and transformation management documents emphasize the importance of stakeholder communication and impact assessment in decision-making processes. The supply manager should have validated the defect and discussed potential solutions with the affected departments to understand the full impact of the issue and to explore possible remediation steps, such as requesting a replacement shipment or working with the supplier to resolve the quality issue. Immediate termination without such consultation could lead to unnecessary disruptions and a lack of alignment with organizational needs. Reference from leadership literature highlight the importance of cross-functional communication and collaborative problem-solving in supply chain management.

NEW QUESTION # 101
An audit of a supply management organization states that the department would likely benefit from the use of electronic signatures. Which of the following steps should be taken FIRST in the corrective action process?

A. Evaluate whether electronic signatures are secure
B. Work with the IT department to purchase an electronic signature program
C. Assess the costs and benefits of implementing an electronic signature
D. Research how industry counterparts use electronic signatures

Answer: A

Explanation:
* Audit Recommendation: The audit suggests that the supply management organization could benefit from using electronic signatures, indicating a need to modernize and potentially streamline processes.
* First Step - Security Evaluation: Before any implementation, it is crucial to ensure that electronic signatures are secure. This involves evaluating their security features, compliance with legal requirements, and potential vulnerabilities.
* Importance of Security: Electronic signatures must meet legal standards and protect the integrity and authenticity of documents to be a viable replacement for handwritten signatures.
* Reference: Security evaluation is a fundamental step in implementing any new technology, as emphasized in IT governance and management frameworks such as COBIT (Control Objectives for Information and Related Technologies) and NIST (National Institute of Standards and Technology) guidelines.
* Next Steps: Once security is assured, the organization can proceed to assess costs and benefits, research industry practices, and work with IT for implementation.

NEW QUESTION # 102
An employee with a disability has been having erratic, unexplained absences from work. The department supervisor counsels the employee, explaining that the absences are affecting productivity and performance. The employee responds by claiming protection under the U.S. Americans with Disabilities Act (ADA). Which of the following is TRUE with regard to this situation?

A. The employee's absences are protected by the ADA, but only if they are directly related to the disability.
B. The employee's absences are protected by the ADA, though work performance is not.
C. Neither the employee's absences nor work performance is protected by the ADA.
D. The employee's absences and work performance are protected by the ADA.
E. S. Equal Employment Opportunity Commission (EEOC) guidelines on the ADA

Answer: A

Explanation:
"The Americans with Disabilities Act: A Guide for Employers" by the U.S. Department of Labor Explanation:
Understanding ADA Protections: The ADA provides protections to employees with disabilities, ensuring they are not discriminated against due to their condition.
Evaluating Absences and Performance:
The ADA protects employees from discrimination due to disabilities but requires that reasonable accommodations be made.
Absences Due to Disability: Protected under the ADA if directly related to the disability and if the employee has provided sufficient medical documentation.
Work Performance: Not protected if the employee fails to meet the job requirements even with reasonable accommodation.
Conclusion: The employee's absences are protected if they are directly related to the disability, and the employer must consider reasonable accommodations. However, overall work performance must still meet the job requirements.

NEW QUESTION # 103
......

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