ISM INTE - Supply Management Integration
When an organization is devising a long-term forecast, consulting external sources of information is MOST useful
A company that manufactures rubber balls wishes to discontinue production and move into the golf ball industry. Consider the following steps in the disposition of the current inventory of rubber balls:
I. Dispose of the rubber balls per local regulations
II. Sell the rubber balls on the open market
III. Grind up the rubber balls and donate the material for a playground in the community
IV. Work with engineering to determine if the rubber can be used in the new golf ball line
In order to maximize recovery of its investment, which of the following is the BEST order for the application of these steps (from first to last)?
A product has the following characteristics:
COGS$1,000,000
Starting Inventory20,000
Ending Inventory10,000
What is the inventory turnover of this item’
A manufacturer has facilities around the world and purchases steel from various global markets. The firm uses decentralized purchasing, with a procurement team in each of its various markets. Management would like to see a corporate approach to steel procurement. Which of the following should the firm's supply manager recommend?
A manufacturing firm prepares the following materials requirement plan (MRP):
Master Production Schedule
Week123456
Item A101015152020
Relevant Information
ItemItem's ParentItem's Lead TimeItem's Lot SizeItem's Current Inventory
ANone1 weekLFL50
BA2 weeks5010
CB2 weeks5010
Using MRP methodology, how much of Item B should be ordered, and when should it be ordered7
XYZ, Inc. is a company based in the United States. XYZ purchases a large quantity of raw materials from a supplier in the Dominican Republic. The supplier packages the materials and delivers them to the shipping company designated by XYZ and loads them onto the ship. The contract specifies Free Carrier At (FCA) Caucedo, Dominican Republic. While the ship is still in port, a hurricane damages the ship and ruins its cargo. Under Incoterms® 2020 rules, who owns the shipment at this point?
A supplier of aircraft seating receives a forecast from a major aircraft manufacturer. The forecast information is considered confidential, and thus the supplier must sign a Non-Disclosure Agreement (NDA). Given this situation, which of the following is MOST likely to be protected by the NDA?
A supply manager learns that parts used in manufacturing are arriving scratched and must be polished before use, thereby hampering production. Sending the parts back to the supplier is not an option, as they are needed to meet increased demand. Which of the following will be MOST helpful in resolving this problem?
The supply manager for a semiconductor company receives an emergency phone call from the firm's factory manager, who states that the manufacturing equipment is down and that a replacement part is needed as soon as possible. The supply manager checks the stock for this part but finds nothing. In this situation, the supply manager should do which of the following?
A company needs 1,000 widgets in Year 1 and projects that it will need 1,200 widgets in Year 2. The Year 1 order cost for widgets is $5, and the Year 1 carrying cost is S4. A recent contract renewal with the company's 3PL warehouse supplier will increase carrying costs in Year 2 to S6. How, if at all, will the Economic Order Quantity (EOQ) be affected?