ISM INTE - Supply Management Integration

Marine transportation is the best option for promoting international trade and transporting large quantities of products at a low cost. It allows for economies of scale, making it the most cost-effective mode for bulk shipments. References: Global trade studies frequently cite maritime shipping as a key enabler of international commerce due to its capacity and cost benefits.

In the VICS CPFR model, the first stage is strategy and planning, which involves establishing the collaboration framework and defining the scope of the partnership. This stage sets the foundation for subsequent processes. References: CPFR (Collaborative Planning, Forecasting, and Replenishment) guidelines emphasize starting with strategic alignment.

The value of the trenching machines, purchased at a cost of $85,000 each three years ago, should be categorized as historic in the asset management system. This refers to the original purchase cost of the assets, which is recorded for accounting and asset tracking purposes. It provides a baseline for depreciation calculations and asset management. References: Accounting standards specify that assets should be recorded at their historical cost to provide accurate financial reporting.

An oligopoly is a market structure where a few sellers dominate the market and many buyers ex-ist. In such a market, prices and output levels are often controlled by the leading firms or through collusion, such as forming a cartel. These firms hold significant market power, which allows them to influence prices and other market factors. Oligopolies are common in industries where high en-try barriers exist, such as telecommunications, airlines, and oil and gas. References:

•Perloff, J. M. (2016). Microeconomics: Theory and Applications with Calculus. Pearson.

•Mankiw, N. G. (2014). Principles of Microeconomics. Cengage Learning.

Point-of-use storage refers to the placement of inventory close to where it is needed in production. This approach supports just-in-time and Kanban systems by ensuring materials are readily accessible, reducing handling and transit times. Reference: Lean manufacturing principles emphasize minimizing waste, and point-of-use storage is a key strategy.

The number of aircraft anticipated to be built is most likely to be protected by the NDA. This information is sensitive as it relates directly to production forecasts and potential market demand, which can impact competitive positioning and business strategy.

A market analysis best describes the study conducted by a cross-functional team to evaluate the feasibility of a new product line. This analysis assesses market demand, competition, and potential profitability, providing insights necessary for decision-making. Reference: Product development and market research methodologies.

Routine categories are regarded as low risk and low value. These items are typically standardized and widely available, requiring minimal management effort. They often include office supplies or basic maintenance items. This classification allows firms to focus resources on more critical areas. Reference: Kraljic’s purchasing portfolio model.

The supply manager and marketing director failed to consider pricing data to forecast trends. By not anticipating cost increases in paper and printing, they couldn't adjust the budget accordingly, leading to overspending. Forecasting trends helps in planning for potential price fluctuations and budget adjustments. References: Effective budgeting in supply chain management requires trend analysis and forecasting to anticipate market changes.