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CPSM VIP Certification Practice Exam III
CPSM — The Certified Professional in Supply Management (CPSM) is issued by the Institute for Supply Management (ISM) and consists of three separate computer-based exams (Foundation, Performance, and Leadership), each with 165 questions (150 scored) and a 3.5-hour time limit, covering supply management strategy, sourcing, contracting, risk, sustainability, and leadership.
29
Questions
105m
Time Limit
70.00%
To Pass
Question 1 of 29👑 VIP
A supply management director at a mid-size automotive manufacturer is evaluating whether to continue outsourcing a precision machined subassembly or bring production in-house. The current supplier charges $42 per unit. Internal analysis shows that fixed capital investment would be $4.2 million, variable cost per unit would be $28, and annual volume is 220,000 units. Which of the following statements most accurately describes the make-versus-buy decision at this volume?
Questions 2–29 and full explanations are VIP-exclusive.