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ISM INTE Web-Based Practice Program

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ISM INTE Exam Syllabus Topics:

Topic
Details

Topic 1

Supply Chain Strategy: This section deals with how to develop and implement material or service standardization programs and implement requirements planning to align supply management activities with organizational strategy.

Topic 2

Quality Management: This section covers understanding and applying quality management principles throughout the supply chain.

Topic 3

Project Management: This section covers applying project management principles to supply management activities.

Topic 4

Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.

Topic 5

Sales and Operations Planning (SOP): This section covers sales and Operations Planning, Demand Planning, and Forecasting.

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ISM Supply Management Integration Sample Questions (Q145-Q150):

NEW QUESTION # 145
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?

A. 36,000
B. 12,000
C. 48,000
D. 10,000

Answer: A

Explanation:
The maximum safety stock is calculated using the formula: (Maximum lead time - Average lead time) x Maximum daily usage. This results in (8 - 3) x 6,000 = 30,000 units. Adding the average usage during average lead time (3 days x 4,000 units = 12,000 units) gives a total of 36,000 units for safety stock. References: Safety stock calculations help in managing inventory to prevent stockouts during lead time variations.

NEW QUESTION # 146
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?

A. Analyze mode, classification and other factors that affect total cost
B. Conduct carrier cost auditing to reduce net costs of transportation
C. Opt for variable freight rates
D. Utilize supplier performance metrics to ensure optimum rates

Answer: A

Explanation:
Analyzing transportation modes, classification, and cost-influencing factors allows the supply manager to identify opportunities for cost savings beyond published rates. This approach leverages supply management skills to optimize logistics strategies, demonstrating value in cost reduction. References: Logistics management theories advocate for comprehensive cost analysis to enhance decision-making and operational efficiency.

NEW QUESTION # 147
A company saves packaging from incoming shipments and utilizes the cartons to sort parts and pad outgoing pallets. This can BEST be described as

A. reduction
B. reuse
C. recycling
D. reclamation

Answer: B

Explanation:
Utilizing packaging from incoming shipments for sorting parts and padding outgoing pallets is best described as reuse. This process involves using materials multiple times before disposal, reducing waste and resource consumption. References: Reuse is a key principle in sustainable supply chain practices, emphasizing the extension of product life cycles.

NEW QUESTION # 148
Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time. Which of the following should the buying firm do in this instance?

A. Calculate the number of times each of the defect types have occurred over the past two weeks, and instruct the supplier to work on finding the root cause of the defect with the highest frequency
B. Work with engineering to determine the impact each defect type has on the customer base and assist the supplier in prioritizing and solving the defect type with the highest customer impact first
C. Work with engineering to submit three corrective action requests and ask the supplier to address all three
D. Calculate the number of times each of the defect types have occurred over the past 90 days, and instruct the supplier to work on finding the root cause of the defect with the highest frequency

Answer: B

Explanation:
Working with engineering to assess the impact of each defect type on customers helps prioritize corrective actions effectively. Addressing the defect with the highest customer impact first ensures that resources are focused on the most critical issues, improving product quality and customer satisfaction.

NEW QUESTION # 149
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?

A. $200,000
B. $120,000
C. $240,000
D. $220,000

Answer: A

Explanation:
Reducing inventory by $1 million with a carrying cost of 20% results in savings of $200,000. This reduction directly impacts profit by decreasing the costs associated with holding inventory. References: Inventory management principles highlight the significance of inventory reduction in improving profitability through lower carrying costs. Calculation: $1,000,000×0.20=$200,000$1,000,000 imes 0.20 =
$200,000$1,000,000×0.20=$200,000.

NEW QUESTION # 150
......

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