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ISM INTE - Supply Management Integration

Page: 5 / 5
Total 167 questions

A company's average inventory value has remained relatively constant, while its cost of goods sold has increased. Which of the following will also likely show an increase for this firm?

A.

Stock level

B.

Cycle time

C.

Turnover

D.

Variance

A manufacturer must work to reduce cost of goods sold (COGS) to achieve profit objectives and remain competitive in a tight market. The manufacturer has long standing relationships with its main suppliers and a strong supply management department that conducts periodic reviews with the suppliers. Nevertheless, the manufacturer is not hitting targets. Which of the following is the BEST course of action for supply management to undertake in order to initiate improvements?

A.

Continue to operate as usual, as manufacturing and operations must focus on labor cost reduction to best impact COGS

B.

Conduct a workshop with suppliers and internal stakeholders, focusing on sustainable improvements and goal alignment

C.

Demand each supplier provide price concessions regardless of contract terms, as it is a tight market

D.

Retender the contracts representing the main cost drivers in order to maximize COGS reduction

A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:

MonthJanFebMarAprMayJunJulAug

Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000

Production20,00020,00020,00020,00020,00020,00020,00020,000

The supply management department learns that one of its retailers is planning a promotional event on August 1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of January, and maximum inventory holding is 15,000 units.

How many units per month should production increase in order to meet the requirements of its retailer and minimize overall inventory levels?

A.

2,000

B.

2,500

C.

14,000

D.

2,715

A company is designing a new warehousing strategy. The firm wants to hire the most qualified personnel, utilize the best technology, and minimize the repetition of inventory across operations. Which of the following warehousing strategies will be BEST suited toward attaining the organization's goals?

A.

Third-party

B.

Hub and spoke

C.

Centralized

D.

Decentralized

If a shipment has a gross weight of 500 pounds and overall dimensions of 42 inches x 48 inches x 48 inches, what is the density of the shipment (in pounds per cubic foot)?

A.

0.744

B.

0.005

C.

8.9

D.

5.0

A project charter addresses which of the following areas?

A.

Problem statement, budget, timeline, work breakdown structure, project team, and sponsor's approval

B.

Problem statement, scope, constraints, milestones, team and authority, risk, and sponsor's approval

C.

Problem statement, statement of work, resource requirements, milestones, and sponsor's approval

D.

Problem statement, team, roles and responsibilities, cost structure, timelines, and sponsor's approval

UVX, Inc. is seeking suppliers of components to be used in a new heavy equipment product UVX is introducing in the marketplace. The firm conducts a market intelligence analysis and spend analysis to determine feasibility. These findings are reported to the company stakeholders, who decide to produce 25 units every two weeks. UVX issues a solicitation for bids and includes the stakeholders' requirements with the specifications.

At the close of the bidding process, UVX receives one offer that can deliver enough components to produce 15 units every four weeks. The remaining potential bidders decline altogether, citing an inability to meet UVX’s specifications.

Which of the following should UVX have done in order to ensure a better response to the solicitation?

A.

Execute a supply chain management process

B.

Perform a value analysis

C.

Conduct early supplier involvement

D.

Perform supplier development

A company moves its warehouse operations to a new location. Soon after, the company experiences higher shipping costs and delays in meeting delivery dates. Which of the following is the MOST likely cause of these increased costs and delays?

A.

The new warehouse is staffed with inexperienced employees.

B.

The new warehouse is farther away from suppliers than the previous one.

C.

The transportation supplier is charging more to drive to the new warehouse.

D.

The transportation supplier's drivers are having difficulty accessing the new warehouse.

How long after the delivery date must a freight claim on a motor carriage shipment be presented and filed with the carrier in the United States’

A.

3 months

B.

120 days

C.

30 days

D.

9 months

The sourcing manager for a regional retail bakery chain reviews order quantities and stocking for perishable condiments on a quarterly basis. Which of the following factors should be the MOST critical consideration in this analysis?

A.

Setting reasonable delivery performance metrics for suppliers

B.

Understanding the tradeoff between freight costs and inventory levels

C.

Balancing customer service expectations with risk of stockouts

D.

Maintaining profitability for low margin items