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ISM INTE - Supply Management Integration

Page: 4 / 5
Total 167 questions

When an organization is devising a long-term forecast, consulting external sources of information is MOST useful

A.

for setting realistic organizational goals

B.

in gathering market intelligence

C.

in eliminating irrelevant data

D.

for benchmarking a specific competitor

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.

II, I, II, IV

B.

II, IV, I, III

C.

IV, I, II, III

D.

I, III, II

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.

The product will turn 100 times.

B.

The product will turn 33.3 times.

C.

The product will tum 50 times.

D.

The product will tum 66.7 times.

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.

A lead business unit for steel, to interface and handle procurement and strategy for each market

B.

A sourcing committee with a representative from each market, to facilitate global steel strategy

C.

Regional procurement groups that focus on steel negotiations and strategies for each market

D.

A corporate steering committee to advise on strategy and act as a liaison with major suppliers

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

A.

50 items immediately and 50 items in week 3

B.

20 items in week 4 and 20 items in week 5

C.

10 items in week 2 and 20 items in week 3

D.

50 items in week 2

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.

The supplier, because it has not yet been delivered to the plant

B.

The supplier, because it has not yet been unloaded

C.

The buyer, because the invoice has been paid

D.

The buyer, because the supplier delivered it to the designated carrier

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.

The time frame expected for completion

B.

The start date of the project

C.

The number of aircraft anticipated to be built

D.

The name of the end customer submitting the request for bid

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?

A.

Acceptance/rejection history

B.

Process control

C.

Corrective action plan

D.

Supplier certification

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.

Ask the factory manager to perform an equipment failure analysis in order to understand the root cause of the equipment failure

B.

Perform a cost analysis to examine if it is better to expedite the part or wait for the part's scheduled arrival date

C.

Contact the equipment supplier and ask it to coordinate an expedited delivery of the part as soon as possible

D.

Verify with the warehouse manager if there is an extra spare part in stock that was not correctly registered in the stock database system

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?

A.

The EOQ will increase in Year 2 to 54 units.

B.

The EOQ will stay the same in Year 2.

C.

The EOQ will decrease in Year 2 to 32 units.

D.

The EOQ will decrease in Year 2 to 45 units.