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Exam Name: CPSM test 1: Foundation of Supply Management

Certification: Part of the Certified Professional in Supply Management (CPSM) program

Administered By: Institute for Supply Management (ISM)

Exam Format: Multiple-choice questions

Number of Questions: 165 questions

Duration: 2 hours and 45 minutes (165 minutes)

Passing Score: Scaled score of 400 or higher (on a scale of 100 to 600)

Delivery Method: Computer-based testing at approved testing centers or online proctored exam

- Procurement

- Procurement processes and strategies

- Sourcing methods

- single sourcing

- multiple sourcing

- global sourcing

- supplier identification and selection

- Procurement ethics and compliance

- Procurement technology and tools

- e-procurement

- ERP systems

- Request for Proposal (RFP)

- Request for Quotation (RFQ)

- Purchase Order (PO)

- Total Cost of Ownership (TCO)

- Make-or-Buy Decision

- Strategic Sourcing

- Spend Analysis

- supplier Relationship Management

- supplier evaluation and qualification

- supplier performance management

- supplier development and collaboration

- supplier risk management

- Contract management and negotiation

- Key Performance Indicators (KPIs)

- Service Level Agreement (SLA)

- supplier Scorecard

- supplier Diversity

- supplier Relationship Management (SRM)

- Contract Compliance

- Supply Chain Management

- Supply chain design and optimization

- Inventory management

- Just-in-Time

- Economic Order Quantity

- Logistics and transportation management

- Demand planning and forecasting

- Supply chain risk management

- Supply Chain Visibility

- Bullwhip Effect

- Lean Supply Chain

- Demand Forecasting

- Inventory Turnover Ratio

- Lead Time

- Legal and Contractual Issues

- Contract law basics

- Intellectual property rights

- Legal and regulatory compliance

- Dispute resolution mechanisms

- Ethical and sustainable procurement practices

- Uniform Commercial Code (UCC)

- Force Majeure

- Breach of Contract

- Indemnification

- Non-Disclosure Agreement (NDA)

- Incoterms

- FOB

- CIF

- DDP

- Cost and Financial Management

- Cost analysis and reduction strategies

- Budgeting and financial planning

- Total Cost of Ownership (TCO)

- Cost modeling and price analysis

- Financial statements and metrics

- Cost-Benefit Analysis

- Return on Investment (ROI)

- Fixed Costs vs. Variable Costs

- Direct vs. Indirect Costs

- Activity-Based Costing (ABC)

- Working Capital

- Risk Management

- Risk identification and exam

- Risk mitigation strategies

- Supply chain disruptions and contingency planning

- Cybersecurity risks in supply management

- Risk Appetite

- Risk Mitigation

- Business Continuity Planning (BCP)

- Force Majeure

- Risk Register

- Contingency Plan

- Quality Management

- Quality standards and certifications

- ISO 9001

- Quality control and assurance

- Continuous improvement methodologies

- Six Sigma

- Lean

- supplier quality management

- Total Quality Management (TQM)

- Quality Assurance (QA)

- Quality Control (QC)

- Defect Rate

- Root Cause Analysis

- Continuous Improvement (Kaizen)

- Technology and Data Analytics

- Procurement and supply chain technologies

- ERP

- MRP

- SCM software

- Data analytics and reporting

- Automation and artificial intelligence in supply management

- Blockchain and its applications in supply chain

- Enterprise Resource Planning (ERP)

- Material Requirements Planning (MRP)

- Big Data Analytics

- Predictive Analytics

- Internet of Things (IoT)

- Blockchain

- Sustainability and Social Responsibility

- Sustainable sourcing practices

- Environmental and social responsibility in supply chains

- Ethical sourcing and fair trade

- Circular economy principles

- Corporate Social Responsibility (CSR)

- Carbon Footprint

- Green Procurement

- Circular Supply Chain

- Fair Trade

- Triple Bottom Line

- People

- Planet

- Profit

- Global Supply Management

- Global sourcing strategies

- International trade regulations and compliance

- Cultural considerations in global supply chains

- Currency and payment risks

- Incoterms

- EXW

- CIF

- DDP

- Tariffs and Duties

- Free Trade Agreements (FTA)

- Letter of Credit (LC)

- Exchange Rate Risk

- Global Sourcing

- Project Management

- Project planning and execution

- Stakeholder management

- Project risk management

- Project performance measurement

- Work Breakdown Structure (WBS)

- Critical Path Method (CPM)

- Gantt Chart

- Project Charter

- Stakeholder Analysis

- Project Lifecycle

- Communication and Negotiation

- Effective communication strategies

- Negotiation techniques and tactics

- Conflict resolution

- Cross-functional collaboration

- BATNA (Best Alternative to a Negotiated Agreement)

- Win-Win Negotiation

- Active Listening

- Stakeholder Engagement

- Conflict Resolution

- Persuasion Techniques

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CPSM-Exam-1 PDF MCQs

PDF Questions and Answers	: 755 (Complete Set)
File Format	: PDF
Latest Update	: March 17, 2026
Files Delivery	: Instant (5 to 10 min.)
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Delivery Method	: get Account
Sample Download	: CPSM-Exam-1 test PDF

The Certified Professional in Supply Management (CPSM) test 1, titled Supply Management Core, is a foundational assessment designed by the Institute for Supply Management (ISM) to validate a professional's mastery of essential procurement functions. For candidates, the syllabus focuses heavily on the strategic identification and acquisition of resources, emphasizing the Job Analysis at the Speed of Reality framework to ensure content reflects modern workplace complexities. Key subject areas include Strategic Sourcing, where candidates must demonstrate proficiency in domestic and international market analysis, and supplier Relationship Management (SRM), which focuses on performance metrics and collaborative value creation. Mastery of specialized terminology—such as Total Cost of Ownership (TCO), incoterms, and contract indemnification—is critical for navigating the scenario-based questions that test practical application over rote memorization.

MCQs Cover the Following Domains
Number	Section	Weight
01	Sourcing	25%
02	Category Management	20%
03	Negotiation	15%
04	Legal and Contractual Issues	15%
05	Supplier Relationship Management	10%
06	Cost and Price Management	15%

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Desktop Test Engine Questions	: 755
Software Version	: 3.0.9
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