Free ISM LEAD Exam Actual Questions

The questions for LEAD were last updated On Dec 19, 2024

Question No. 1

Which of the following requires that exporters certify electronic components are free of certain hazardous materials through the placement of a certification sticker on the unit?

Show Answer Hide Answer
Correct Answer: D

The RoHS (Restriction of Hazardous Substances) directive requires that exporters certify electronic components are free of certain hazardous materials through the placement of a certification sticker on the unit.

RoHS Directive: This European Union directive restricts the use of specific hazardous materials found in electrical and electronic products. The goal is to reduce environmental impact and increase recycling and reuse of electronic equipment.

Certification: Exporters must certify that their products comply with RoHS standards by labeling them accordingly. This ensures that products are safe and meet environmental regulations.


European Union. (2003). Directive 2002/95/EC on the restriction of the use of certain hazardous substances in electrical and electronic equipment (RoHS). Official Journal of the European Union.

O'Connor, S. (2006). RoHS Compliance: A Guide to the RoHS Directive. IT Governance Publishing.

Question No. 2

A supply management department has recently received resignations from several important staff members. Exit interviews indicate that the primary reason for the staff members' departure was frustration over their expertise not being valued. They also viewed their work as repetitive and not an efficient use of their time or effort. Which of the following would be the BEST way for the department manager to improve this situation?

Show Answer Hide Answer
Correct Answer: C

Identify the core issue: The resignations were due to staff members feeling their expertise was undervalued and their work was repetitive.

Best practice in leadership: According to leadership and transformation management principles, addressing motivational dimensions and job design is crucial. Theories like Herzberg's Two-Factor Theory emphasize the importance of job enrichment to enhance job satisfaction.

Redesign job descriptions: This involves analyzing and altering job roles to make them more engaging and utilize employees' skills effectively. Techniques such as job rotation, job enlargement, and job enrichment can be employed.

Empower employees: Giving employees a sense of purpose and ensuring their work is meaningful aligns with transformational leadership principles.

Reference: ''Motivation and Personality'' by Abraham Maslow and ''Work and Motivation'' by Victor Vroom highlight the need for job redesign to improve motivation and productivity.


Question No. 3

In global sourcing, for which of the following areas is verifying compliance likely to be MOST difficult?

Show Answer Hide Answer
Correct Answer: D

Verifying compliance in the area of social responsibility is likely to be the most difficult in global sourcing. Ensuring that suppliers adhere to social responsibility standards, such as fair labor practices, human rights, and ethical sourcing, can be challenging due to varying regulations, cultural differences, and lack of transparency. Leadership and transformation management documents emphasize the complexities of managing social responsibility in global supply chains. Reference highlight that social audits, certifications, and continuous monitoring are essential but can be resource-intensive and difficult to enforce consistently across different regions.


Question No. 4

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?

Show Answer Hide Answer
Correct Answer: B

Using the firms' combined cognitive procurement system, the CPO is most likely to yield information on the price, quality, performance, and reliability of the components and the suppliers. This data is crucial for consolidating duplicate components under one supplier for the lowest total cost.

Cognitive Procurement Systems: These systems utilize artificial intelligence and data analytics to provide comprehensive insights into procurement activities. They help in assessing various parameters such as cost, quality, and supplier performance.

Decision-Making: Having detailed information on price, quality, performance, and reliability allows the CPO to make informed decisions about which suppliers to consolidate, ensuring that the best overall value is achieved.

Optimization: This approach helps in optimizing the supply chain by selecting suppliers that offer the best combination of cost efficiency and reliability, ultimately reducing total procurement costs.


Handfield, R.B., & Nichols, E.L. (1999). Introduction to Supply Chain Management. Prentice Hall.

Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2015). Purchasing and Supply Chain Management. Cengage Learning.

Question No. 5

RST Petroleum and Fuel, Inc. ensures that its refineries follow all OSHA regulations, particularly with regard to personal protection and safety training. RST's Safety Data Sheets (SDS) are accessible on the intranet for all employees to view.

RST hires a new janitorial service to clean all of its offices, restrooms and showers. The janitorial service insists on supplying its own cleaning products. RST agrees to this, but wants the service to provide the SDS for its products, to be posted on the RST intranet site. Although the janitorial service has been working at RST for three months and has been doing an excellent job, it fails to provide RST with the requested information.

Given this situation, which of the following should RST do?

Show Answer Hide Answer
Correct Answer: B

Regulatory Compliance: OSHA regulations mandate that Safety Data Sheets (SDS) must be accessible for all hazardous chemicals used in the workplace. This requirement applies to all materials, including those used by contractors.

Employee Safety: Ensuring SDS are available for all chemicals used on-site is crucial for maintaining a safe working environment. Employees must be aware of potential hazards and how to handle chemicals safely.

Risk Management: Continuing operations without the necessary SDS poses a risk to employee safety and exposes the company to regulatory penalties.

Corrective Action: Discontinuing work with the janitorial services firm until the SDS are provided is a proactive measure to mitigate this risk.

Contractual Obligation: The janitorial service is in breach of the safety requirements agreed upon. Immediate cessation of their services until compliance is achieved is necessary.

Reference: OSHA's Hazard Communication Standard (29 CFR 1910.1200) and industry best practices for contractor management support this approach.