LEAD Latest Exam Registration - Reliable LEAD Test Answers

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ISM Leadership and Transformation in Supply Management Sample Questions (Q68-Q73):

NEW QUESTION # 68
An audit of a supply management organization states that the department would likely benefit from the use of electronic signatures. Which of the following steps should be taken FIRST in the corrective action process?

A. Assess the costs and benefits of implementing an electronic signature
B. Research how industry counterparts use electronic signatures
C. Work with the IT department to purchase an electronic signature program
D. Evaluate whether electronic signatures are secure

Answer: D

Explanation:
* Audit Recommendation: The audit suggests that the supply management organization could benefit from using electronic signatures, indicating a need to modernize and potentially streamline processes.
* First Step - Security Evaluation: Before any implementation, it is crucial to ensure that electronic signatures are secure. This involves evaluating their security features, compliance with legal requirements, and potential vulnerabilities.
* Importance of Security: Electronic signatures must meet legal standards and protect the integrity and authenticity of documents to be a viable replacement for handwritten signatures.
* Reference: Security evaluation is a fundamental step in implementing any new technology, as emphasized in IT governance and management frameworks such as COBIT (Control Objectives for Information and Related Technologies) and NIST (National Institute of Standards and Technology) guidelines.
* Next Steps: Once security is assured, the organization can proceed to assess costs and benefits, research industry practices, and work with IT for implementation.

NEW QUESTION # 69
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?

A. OSHA
B. WEEE
C. REACH
D. RoHS

Answer: D

Explanation:
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.
Reference:
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.

NEW QUESTION # 70
CDE, Inc. is a U.S.-based sporting apparel company. CDE contracts with a manufacturer in another country to produce a specialized line of clothing. In the first few months, sales of the new line are very disappointing. It is then discovered that the manufacturer is marketing counterfeit copies of the new line in the U.S. and abroad, thus undercutting CDE's pricing and damaging its reputation. Given this situation, which of the following should CDE do FIRST?

A. Issue a cease and desist notification and reassess production risk
B. File suit against the manufacturer in its home country and the United States
C. Notify the World Trade Organization of copyright breach by the manufacturer
D. File a complaint with U.S. Customs and Border Protection against the manufacturer

Answer: A

Explanation:
When a manufacturer is discovered marketing counterfeit copies of CDE's products, the first course of action should be to issue a cease and desist notification and reassess production risk. This approach is recommended by leadership and transformation management documents, which emphasize the importance of promptly addressing intellectual property breaches while evaluating the associated risks. Issuing a cease and desist notice serves as a formal demand to stop the infringing activities, protecting the company's legal rights and initiating the process of addressing the violation. Reassessing production risk involves evaluating the current supplier's reliability and considering alternative suppliers to mitigate future risks. Reference highlight the necessity of protecting intellectual property and maintaining supplier integrity in global supply chains.

NEW QUESTION # 71
XYZ, Inc. is a large manufacturing firm. An internal stakeholder asks XYZ's supply manager to assist with the sourcing of a temporary labor provider for short-term staffing needs. The stakeholder identifies a number of temporary labor agencies that XYZ has worked with in the past. One of these agencies employs the supply manager's spouse as its vice president of marketing. Which of the following is TRUE in this situation?

A. The supply manager should inform the department supervisor and the stakeholder of the personal relationship and state in writing that it will have no impact on the procurement.
B. The supply manager should inform the department supervisor and the stakeholder of the personal relationship and request to be removed from the procurement.
C. Since the stakeholder identified all of the potential suppliers, the supply manager is under no obligation to report the relationship.
D. Since XYZ has worked with all of the agencies in the past, the supply manager is under no obligation to report the relationship.

Answer: B

Explanation:
In situations involving potential conflicts of interest, transparency and avoidance are key principles.
Conflict of Interest: The supply manager's spouse being employed by one of the agencies presents a clear conflict of interest. The supply manager's impartiality could be compromised, or perceived to be compromised, in making sourcing decisions.
Transparency: Informing the department supervisor and the stakeholder about the personal relationship ensures that all parties are aware of the potential conflict. Transparency in this situation helps maintain trust and integrity in the procurement process.
Avoidance: Requesting to be removed from the procurement eliminates any bias or perceived bias from the decision-making process. This step aligns with ethical guidelines and best practices in supply management and corporate governance.
Reference:
Institute for Supply Management. (2012). ISM Principles and Standards of Ethical Supply Management Conduct.
Trevino, L.K., & Nelson, K.A. (2017). Managing Business Ethics: Straight Talk about How to Do It Right. Wiley.

NEW QUESTION # 72
JKL, Inc. is considering a plan to divest one of its business units. As part of the due diligence process, JKL's supply manager is asked to determine what will have the most immediate impact on supply management when the business unit is divested. Given this situation, which of the following should the supply manager review FIRST?

A. Take-or-pay agreements
B. Contracts containing tiered discount schedules
C. Blanket purchase orders
D. Strategic contracts with assignability provisions

Answer: A

Explanation:
* Immediate Impact: Take-or-pay agreements obligate the company to take delivery of goods/services or pay a penalty. These agreements can have significant financial implications upon divestiture.
* Financial Commitments: Reviewing these agreements first helps understand immediate financial obligations and liabilities that will impact the supply management function.
* Divestiture Process: Identifying and managing these commitments is crucial during the due diligence process to ensure a smooth transition and avoid unexpected costs.
* Reference: Due diligence best practices in supply chain management (e.g., Deloitte and EY reports) emphasize the importance of reviewing binding financial agreements like take-or-pay contracts during divestitures.

NEW QUESTION # 73
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LEAD Latest Exam Registration - Reliable LEAD Test Answers

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ISM Leadership and Transformation in Supply Management Sample Questions (Q68-Q73):

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