How to Pass Your Supply Management Integration Exam? – Choose ISM INTE Dumps (V8.02) as Learning Materials for Preparation

1. A supply manager wishes to implement an enterprise resource planning (ERP) system.

During which phase of the system development process should the supply manager communicate with end users to review their business environments?

2. A firm hires a contractor to build a new warehouse. During construction, the firm decides it wants to modify the contract to add an office area to the facility.

Which of the following is the BEST course of action for the firm to take in this situation?

3. NXY, Inc. buys high-quality fragile products from a supplier. Numerous shipments from this supplier have arrived with dents on the packages, resulting in damaged products. Given this situation, which of the following is the FIRST course of action WXY should take?

4. A utility installation company conducts an annual review of its assets. Included with its equipment are several trenching machines that were purchased three years ago at a cost of $85,000 each.

How should this value be categorized in the asset management system?

5. A manufacturer receives notice from one of its largest customers stating that, from this point on, it will only accept environmentally friendly boxes for packaging. The manufacturer checks the remaining packaging in its inventory and finds that it still has over six months' worth of boxes that are not made of environmentally-friendly materials. These boxes are custom-designed and cannot be returned to the packaging material supplier.

In this situation, the manufacturer would be BEST served by doing which of the following?

6. Which of the following is the GREATEST advantage of using component standardization in product design?

7. In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement.

Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?

8. 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?

9. In sourcing packaging for industrial purposes, which of the following will be MOST useful for monitoring price behavior?

10. There are 10,000 units in stock for the beginning of January, and maximum inventory holding is 19,000 units. Sales are recorded at the end of the month.

A firm is reviewing its demand plan for the following cycle. Its facility operates a level production strategy.

The initial pan is show in the following figure:

Procurement receives a communication from one of its retailers that it is planning a promotional event in July. The retailer forecasts that it will require an additional 20,000 units.

By how much should the level production strategy increase its monthly output of units in order to meet the requirements of the retailer and minimize overall inventory levels?

11. FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asia. The equipment is to be installed in a new auditorium that FGH is constructing. Failure to complete the project in time for its scheduled opening will subject FGH to penalties. FGH receives notice from the supplier that the equipment is packaged and ready to ship as planned via ocean freight but that an impending storm may cause delays. FGH needs to stay within budget.

In this situation, which of following is the BEST course of action for FGH to take?

12. Which of the following modes of transportation BEST promotes international trade and offers a low cost option for transporting large quantities of product?

13. A distributor receives orders from a customer for the following parts:

PO1801: 6 pcs of Item #XYZ-06

3 pcs of Item #XYZ-09 PO1802: 3 pcs of Item #XYZ-09

Item #XYZ-06 is currently out of stock. The shipping manager contacts the customer, who gives authorization to ship the available parts and back order the rest.

What is the line count fill rate for the customer?

14. Material accumulated for a well-defined future need is called

15. An organization purchases materials beyond current and anticipated requirements in expectation of a price increase or shortage, in the hope that it will profit from the sale of the materials at a later date.

This describes which of the following buying strategies?

16. A warehouse manager notices that there has been a constant shortage of 4K TVs for the last few months. An investigation finds that the TVs have been stolen, even though warehouse access is strictly controlled by employee ID badge.

In this situation, the warehouse manager's FIRST course of action should be to

17. 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)?

18. At the beginning of each year, a large firm’s indirect procurement organization holds a brainstorming session. These sessions produce many great ideas and foster support among the procurement team. However, after a few years, support for the brainstorming sessions begins to diminish, and the projects discussed are pushed aside in order to deal with more pressing issues.

In this situation, which of the following would be the BEST course of action to take?

19. A manufacturing firm redesigns its premier product to benefit from material standardization. The change will entail re-tooling costs. The firm conducts a cost benefit analysis on four possible options. Option 1 is to make no change at all.

Options 2, 3, and 4 represent different re-tooling configurations involving different materials:

In addition to this, there will be a cost of $3.5 million in lost production during Year 1, should any of the re-tooling options (2, 3, or 4) be selected.

The firm wants to rank the options in order of financial preference, from the best option to the worst.

Based on this information, how should the four options be ranked?

20. Which of the following is the FIRST stage in the Retail Event Collaboration Process Overview (VICS CPFR Model)?

21. MNO, Inc. operates within a volatile industry in which unforeseen demand and events often result in unreliable forecasts.

Which of the following is the BEST way for MNO to generate better information about demand and improve forecast accuracy?

22. Which of the following refers to a computer-based system that determines the purchase requisition requirements that go into the manufacture of end items, and addresses an organization's operational, financial and marketing strategies?

23. An organization purchases material from several countries. These materials are assembled into products and sold in several other countries.

This firm's product specifications will MOST likely reference

24. A company logistics manager is informed that, because of an emergency, part of the firm's ocean-going cargo had to be thrown overboard. The losses are to be split 50/50 between the shipper and the freight company.

Which of the following pertains MOST closely to this issue?

25. A manufacturer is updating its production plans for the remainder of the year. The firm has already obtained revised needs information from its customers, as well as the finance and sales teams.

Which of the following additional information would be MOST useful to the firm?

26. Which of the following BEST explains why forecast accuracy is important in contracts with suppliers?

27. Which of the following ensures that project requirements are being met within project constraints?

28. 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?

29. A firm sells an average of 2,000 units of snacks from its existing stock while it waits for orders to be delivered. Demand during lead time varies in accordance with a normal distribution.

The firm's supply manager prepares a presentation to explain the concept of customer service and safety stock levels using the following figure:

What does the shaded area D (in red) represent?

30. A supply manager is tasked with assisting internal customers in refining their budgets and planning future sourcing. The supply manager works with the firm's marketing director on a budget which includes a large direct mail campaign and the revision of promotional materials for several products. Six months later, marketing has nearly exhausted the budget due to cost increases in paper and printing, even though the marketing campaign's scope has not changed.

Which of the following did the supply manager and marketing director fail to consider?

31. XYZ, Inc. is a manufacturer and distributor of fishing gear. XYZ relies on poorly-executed forecasts from its retail partners, which leads to exaggerated demand. This in turn leads to XYZ experiencing increased inventory, material handling concerns, and difficulties managing its accounts payable.

Which of the following BEST describes what is occurring in this situation?

32. A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?

33. A company would like to reduce its inventory. The firm's investment in inventory represents 12% of the company's $11 million total assets. The inventory carrying cost is 20%. An inventory reduction of $1 million is considered a feasible goal.

What impact would meeting this goal have on profit?

34. A supply manager negotiates a volume discount with a key supplier. The supplier will provide a discount on screws, bolts, and nuts, based on the quantity indicated on the purchase order (PO).

Which of the following would be the BEST way for the buying firm to maximize the benefits of this discount?

35. An organization has a forecast for June of 125 units. However, 140 units actually sell.

What is the exponential smoothing forecast for July if the alpha is 0.2?

36. A manufacturer is concerned that excess packaging materials used for a product will send the wrong message to consumers who may have selected the product based on its sustainable design.

How can supply management positively impact this situation?

37. 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?

38. An organization's capital expenditure policies are MOST closely aligned with which of the following types of assets?

39. A company saves packaging from incoming shipments and utilizes the cartons to sort parts and pad outgoing pallets.

This can BEST be described as

40. A company finds that delays and cost overruns are creating problems in its service contracts.

To improve this situation, which of the following should the firm do FIRST?

41. A supply manager is reviewing safety stock for a particular unit. The unit is small, Inexpensive, non-perishable, and easily stored, but is critical to the firm's manufacturing process.

The following information is known about this unit:

Maximum lead time = 8 Days

Average lead time = 3 Days

Maximum daily usage = 6,000 Units

Average daily usage = 4,000 Units

What is the maximum safety stock that should be maintained for this unit?

42. Which of the following circumstances MOST warrants expediting?

43. A wine bar which also serves tapas and sandwiches notices that its customer volume fluctuates significantly (depending on convention tourism and hotel night stays) and that wait times for seating are growing longer. As a result, managing demand for perishable food products is becoming more challenging.

Which of the following would be MOST useful in this scenario?

44. When executing a new project, which of the following is MOST important to a smooth transition?

45. For many years, WXY Company's policy has been to buy only domestically manufactured MRO materials and maintain quantities of these materials at each operating location. A recent analysis reveals that this practice is not the most efficient and effective way for this firm to manage its MRO purchases.

Given this situation, which of the following is the BEST course of action for WXY’s supply management department to take?

46. A buyer is reviewing a quote for a shipment of electronic materials from Europe to Africa. The supplier offers a reasonable price for the materials and plans to deliver them using its regular shipping service. The terms are such that the buying company takes possession of the goods once they are loaded onto a boat in Europe.

Which of the following information should be of GREATEST concern to the buyer?

47. A specialized sewing shop quilts fabrics for use in upholstered furniture. Various patterns are produced on different machines, each of which has its own set-up routine. At times, one type of machine is idle while others are backed up. The sewing floor supervisor finds new software which makes the machines' patterns interchangeable.

Which of the following is the MOST likely result of upgrading to the new software?

48. A specialized sewing shop quilts fabrics for use in upholstered furniture. Various patterns are produced on different machines, each of which has its own set-up routine. At times, one type of machine is idle while others are backed up. The sewing floor supervisor finds new software which makes the machines' patterns interchangeable.

Which of the following is the MOST likely result of

upgrading to the new software?

49. A company purchases raw materials from a domestic supplier that offers competitive overland transportation rates. The firm requires the goods be delivered to its manufacturing plant.

Which of the following Incoterms® 2020 rules should be used if the firm wants risk to transfer at the manufacturing plant?

50. MNO, Inc. is a manufacturing firm. MNO's end-of-year inventory is 54,000,000 and its cost of goods sold is $2,300,000. For the previous year, MNO's end-of-year inventory was $5,000,000 and the cost of goods sold was $3,000,000.

What is this year's inventory turnover?

51. A home goods manufacturer runs an annual sales promotion, and the promotion achieves success beyond the firm's expectations. As a result, the firm runs short of a critical material. The firm purchases additional material, only to be left with excess inventory once the promotion runs its course.

To avoid this situation, which of the following should the organization have considered?

52. A company requires a physical tracking system for goods received and handled in its warehouse. The firm's executive management requests a report to justify funding for the tracking system.

Which of the following is the PRIMARY point the report should address?

53. A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive.

Given this situation, which of the following will ensure that the firm has the proper planning in place?

54. Which of the following is calculated by taking the selling price of the buyer's end product and subtracting the required profit?

55. A firm is looking to expand to a larger warehouse.

Which of the following should be given the GREATEST consideration when determining the new warehouse's environmental impact?

56. 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)?

57. A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should

58. GHI, Inc. is a U.S.-based company with an expanding product line. GHI widens its sourcing of components to global suppliers, including suppliers in countries which are not included in trading blocs or bilateral agreements with the United States.

Compliance with which of the following will MOST likely reduce GHI's administrative burden of cargo inspections on materials imported from these sources?

59. 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?

60. A company that has never focused on supply management in the past is now faced with increasing competition from new, innovative products entering its market. As a result, the firm's business strategy includes an increased focus on cost containment.

Given this situation, which of the following should the company do FIRST?