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Exam 1: Foundation of Supply Management

1-E. Sourcing

1-E-2 Continued

  • 4)

    Technical analysis

  • 5)

    Operational analysis

    • A)

      Site audits

  • 6)

    Cost and price analysis

    • A)

      Price analysis methods

1.0 Market benchmarking

  • B)

    Profit analysis

  • C)

    Savings analysis

  • D)

    Total cost vs. price

1.0 Learning curve 2.0 Life-cycle costing

    • E)

      Cost analysis

  • 7)

    Offeror capability/offeror responsibility

    • A)

      Past performance

    • B)

      Capacity

    • C)

      Skills

    • D)

      Integrity

    • E)

      Time in business/market

    • F)

      Certification and licensing

    • G)

      Financial factors

    • H)

      Reference checking

  • 8)

    Transportation terms

    • A)

      International transportation terms (INCOTERMS)

    • B)

      Domestic transportation terms

  • 9)

    Other factors

    • A)

      Availability

    • B)

      Leadtime

    • C)

      Logistical concerns

    • D)

      Supplier diversity considerations

  • E)

    Business continuity plans

  • F)

    Information security

1-E-3

Plan and communicate sourcing and supply strate- gies based on forecasted data.

Knowledge of:

  • 1)

    Buying strategies

    • A)

      Spot buying

    • B)

      Buying to requirements

    • C)

      Forward buying

    • D)

      Speculative buying

    • E)

      Volume purchase agreements

    • F)

      Life-of-product supply

    • G)

      Just-In-Time

    • H)

      Consignment

    • I)

      Commodities

1.0 Market dynamics 2.0 Exchanges 3.0 Terminology

    • J)

      Supplier replenishment systems

    • K)

      Outsourcing

  • 2)

    Financial tools

    • A)

      Hedging

    • B)

      Dollar averaging

    • C)

      Contracting

  • 3)

    Forecasts of volume

    • A)

      Determining annual requirements

    • B)

      Part (or product) life cycle

    • C)

      Supply markets relative to short and

long-term buying needs

ISM CPSM Exam Specifications

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