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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 Jul. 21, 2025 (see below)
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.
An organization institutes a program whereby employees visit a local high school to meet with students and introduce them to careers in business. This firm is likely to be one that has a
An organization that institutes a program for employees to visit a local high school to introduce students to careers in business likely has a strong commitment to social responsibility.
Social Responsibility: This initiative reflects the company's commitment to giving back to the community, promoting education, and supporting the development of future talent.
Community Engagement: Engaging with local schools and students demonstrates the company's dedication to social responsibility by contributing to the social and educational development of the community.
Carroll, A.B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons.
Freeman, R.E., Harrison, J.S., & Wicks, A.C. (2007). Managing for Stakeholders: Survival, Reputation, and Success. Yale University Press.
In global sourcing, for which of the following areas is verifying compliance likely to be MOST difficult?
Verifying compliance in the area of social responsibility is likely to be the most difficult in global sourcing. Ensuring that suppliers adhere to social responsibility standards, such as fair labor practices, human rights, and ethical sourcing, can be challenging due to varying regulations, cultural differences, and lack of transparency. Leadership and transformation management documents emphasize the complexities of managing social responsibility in global supply chains. Reference highlight that social audits, certifications, and continuous monitoring are essential but can be resource-intensive and difficult to enforce consistently across different regions.
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