Free ISM LEAD Exam Actual Questions

The questions for LEAD were last updated On Nov 18, 2024

Question No. 1

A tech company creates several innovative software programs for internal usage, including a program that streamlines supply chain management. To leverage its efforts, the company markets a version of this program. An important potential customer asks the supply manager about future enhancements to the software. While such updates are in progress, they have not been announced. Given this situation, which of the following is the BEST course of action for the supply manager to take?

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Correct Answer: D

Understanding the Situation:

The supply manager knows of future enhancements to a software program but these updates are not publicly announced.

It is essential to handle this information carefully to avoid breaching confidentiality or misrepresenting the product.

Best Course of Action:

Coordinating with Marketing: Ensures that any information shared with the potential customer is accurate and aligns with the company's communication strategy.

The marketing department can confirm whether the details of the future release can be disclosed and provide guidance on how to present this information appropriately.

Conclusion: By coordinating with the marketing department, the supply manager ensures proper handling of sensitive information, maintains alignment with company policies, and avoids potential legal or ethical issues.


''Marketing Management'' by Philip Kotler and Kevin Lane Keller

Corporate communication policies and guidelines from internal company documents

Question No. 2

MNO, Inc. hires a contractor to renovate its office space. The firm pays a deposit for new countertops for the office's cafeteria, but the contractor states that it will not be able to install the new countertops by the agreed upon date. The space needs to be completed on time for a planned grand opening event. Which of the following is the BEST course of action for MNO to take?

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Correct Answer: B

Understanding the Situation: The contractor has failed to meet the agreed-upon deadline for installing countertops, which is critical for a planned grand opening event.

Options Analysis:

Withholding Payment: This might pressure the contractor but does not guarantee timely completion.

Seeking Remedy: Legally sound approach; ensures the uncompleted work is addressed and allows another supplier to finish the job on time.

Dismissing the Contractor: May lead to further delays due to the process of hiring another contractor.

Rescheduling the Event: May not be feasible due to the planned nature of the grand opening event.

Best Course of Action:

Seeking a remedy for the uncompleted portion allows MNO to hold the contractor accountable and minimizes disruption by enabling another supplier to complete the work on time.

This approach is both pragmatic and legally sound, ensuring the project remains on track for the event.

Outcome:

Minimizes risk and ensures project completion within the required timeframe.

Maintains professional and legal standards in contract management.


Project management principles from PMBOK (Project Management Body of Knowledge)

Contract law references from the American Bar Association (ABA)

Question No. 3

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?

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Correct Answer: C

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.


Question No. 4

In order to ensure that employee performance measures are aligned with the overall business model and the strategic direction of the organization, the supply management department's goals and objectives should be

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Correct Answer: D

The goals and objectives of the supply management department should be developed at the senior executive level. Here's a detailed explanation:

Senior Executive Involvement:

Alignment with Strategic Direction: Goals developed at the senior executive level ensure alignment with the overall business model and strategic direction of the organization.

Resource Allocation: Senior executives can provide the necessary resources and support for achieving these goals.

Strategic Oversight: Executive involvement ensures that the department's objectives are integrated into the broader organizational strategy.

Why Not Other Options?

Established at the start of each calendar year (A): While setting goals annually is good practice, the critical factor is that they align with the strategic direction set by senior executives.

Approved by the chief financial officer (B): Financial oversight is important, but strategic alignment requires broader executive involvement.

Treated as confidential information (C): While some goals may be confidential, the key aspect is strategic alignment.


Strategic alignment in supply chain management (Kaplan, R.S., Norton, D.P., The Balanced Scorecard, 1996).

Role of senior executives in setting organizational goals (Drucker, P.F., Management: Tasks, Responsibilities, Practices, 1974).

Question No. 5

Which of the following factors influencing department effectiveness are MOST directly under supply management's control?

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Correct Answer: B

Staff capabilities are the factors most directly under supply management's control that influence department effectiveness. Leadership and transformation management documents emphasize the importance of developing and leveraging the skills and expertise of supply management professionals. By investing in training, professional development, and performance management, supply management can directly enhance its team's capabilities, leading to improved efficiency and effectiveness. Reference highlight that building a highly skilled and knowledgeable team is crucial for achieving supply management objectives and driving organizational success.