CORE Exam Dumps - ISM CPSM Questions and Answers

A Pareto analysis chart is used to identify and rank the most important categories based on the principle that 80% of effects come from 20% of causes. By conducting a spend analysis and using a Pareto analysis chart, the supply manager can determine which categories account for the majority of the company's spending. This helps in prioritizing efforts and resources towards the most impactful categories.

References

Juran, J.M. (1989). Juran on Leadership For Quality: An Executive Handbook.

CIPS (Chartered Institute of Procurement & Supply). Spend Analysis and Pareto Principle.

A joint research and development (R&D) team is most beneficial for developing supplier technologies and processes important to the buying organization. By forming a joint R&D team, both the buying organization and the supplier can collaborate closely to innovate and improve technologies and processes that are directly aligned with the organization's strategic goals. This collaboration fosters knowledge sharing, leverages combined expertise, and enhances mutual commitment to achieving advanced technological solutions and process improvements that benefit both parties. References:

Monczka, R., Handfield, R., Giunipero, L., & Patterson, J. (2020). Purchasing and Supply Chain Management. Cengage Learning.

ISM (Institute for Supply Management) resources on supplier collaboration and joint development.

Internal stakeholders are individuals or groups within an organization who are directly affected by its operations and decisions. Members of executive management are considered internal stakeholders because they have a vested interest in the company's performance and outcomes. They are involved in strategic decision-making and are impacted by the company's success or failure.

References

Principles of Supply Chain Management by Joel D. Wisner, Keah-Choon Tan, G. Keong Leong

Stakeholder Theory and Supply Chain Management: Business Ethics Quarterly