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ISM LEAD Exam Questions
- Topic 1: Strategy Development: This section covers creating and carrying out long-term supply management plans to meet organisational objectives.
- Topic 2: Stakeholder Engagement: The section covers cooperating and communicating effectively with internal and external stakeholders impacted by supply chain choices.
- Topic 3: People Development and Coaching: In this section, focus is on nurturing talent and fostering skills growth within the supply management team.
- Topic 4: Systems Capability and Technology: This domain covers developing talent and expanding skill sets among the supply management group members.
- Topic 5: Risk and Compliance: This domain covers identifying, assessing, and mitigating potential threats while ensuring adherence to regulations in supply management.
- Topic 6: Corporate Social Responsibility and Ethics: This domain covers incorporating ethical and sustainable practices into decision-making and supply chain processes.
Free ISM LEAD Exam Actual Questions
Note: Premium Questions for LEAD were last updated On Oct. 08, 2025 (see below)
A subsidiary of a medical equipment company buys raw materials from suppliers contracted through the central commodity management group, which is located at corporate headquarters. The president of the local woman-owned merchants association contacts the firm's supply manager and asks why the firm does not support the local economy, as some of the raw materials are available from nearby woman-owned suppliers. Which of the following is the BEST way for the supply manager to address this concern?
Addressing concerns about local economic support and diversity requires discussing purchasing social responsibility with the supply management staff at headquarters. This approach aligns the company's sourcing practices with broader corporate social responsibility (CSR) goals. By engaging in this discussion, the supply manager can advocate for the inclusion of local, woman-owned suppliers, thereby supporting the local economy and diversity initiatives. This step is proactive and demonstrates the firm's commitment to social responsibility, which can enhance its reputation and community relationships.
Carter, C. R., & Jennings, M. M. (2004). The Role of Purchasing in Corporate Social Responsibility: A Structural Equation Analysis. Journal of Business Logistics.
Porter, M. E., & Kramer, M. R. (2006). Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review.
An employee who has been competent and reliable in the past suddenly exhibits erratic behavior and makes mistakes which could have a serious impact on the department as well as the company. The department supervisor learns that the employee is trying to cope with extraordinary family challenges. Given this situation, which of the following is the BEST course of action for the supervisor to take?
When an employee exhibits erratic behavior and performance issues due to extraordinary family challenges, the best course of action for the supervisor is to refer the employee to the company's employee assistance program (EAP). EAPs provide confidential counseling and support services to help employees deal with personal problems that might affect their work performance. This approach demonstrates empathy and support for the employee while also addressing the underlying issues that may be impacting their job performance.
Dessler, G. (2013). Human Resource Management. Pearson Education.
Armstrong, M. (2009). Armstrong's Handbook of Human Resource Management Practice. Kogan Page Publishers.
A supply management department has an upcoming audit of its procurement system. The department supervisor is conducting a pre-audit assessment to validate compliance with company policies and procedures. Which of the following is the FIRST step the supervisor should take?
The first step in conducting a pre-audit assessment is to define the scope and objective of the review. This involves clarifying what the audit will cover, the specific objectives to be achieved, and the criteria for evaluating compliance with company policies and procedures. Defining the scope and objectives provides a clear framework for the assessment, ensuring that the review is focused and effective.
Sawyer, L. B., Dittenhofer, M. A., & Scheiner, J. H. (2003). Sawyer's Internal Auditing: The Practice of Modern Internal Auditing. The Institute of Internal Auditors.
Moeller, R. R. (2013). Executive's Guide to IT Governance: Improving Systems Processes with Service Management, COBIT, and ITIL. Wiley.
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?
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)
Which of the following integrates various functions within an organization, including forecasting, materials management and purchasing?
Enterprise Resource Planning (ERP) systems integrate various functions within an organization, including forecasting, materials management, and purchasing. ERP systems provide a unified platform that allows different departments to share data and processes, facilitating better coordination and decision-making. This integration helps streamline operations, improve efficiency, and enhance overall organizational performance by providing real-time data and analytics.
O'Leary, D. E. (2000). Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk. Cambridge University Press.
Monk, E., & Wagner, B. (2012). Concepts in Enterprise Resource Planning. Cengage Learning.
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