QUIZ INTE - HIGH-QUALITY SUPPLY MANAGEMENT INTEGRATION TRUSTWORTHY PRACTICE

Quiz INTE - High-quality Supply Management Integration Trustworthy Practice

Quiz INTE - High-quality Supply Management Integration Trustworthy Practice

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ISM Supply Management Integration Sample Questions (Q19-Q24):

NEW QUESTION # 19
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?

  • A. Reverse logistics
  • B. International law
  • C. Incoterms 2020 rules
  • D. Maritime law

Answer: D

Explanation:
Maritime law governs incidents at sea, including jettisoning cargo to save a vessel during emergencies. This scenario reflects principles of general average, where losses are shared among parties. Reference: Tetley, W.
(2002). Marine Cargo Claims.


NEW QUESTION # 20
DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows:
MonthJulAugSepOctNovDecJanFeb
Unit Sales1001502006001,4002,2004,00010,000
Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.
There are only three suppliers capable of providing the specialized component critical to this product. The production capacities of these suppliers are as follows:
*Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business
*Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business
*Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business Two of these companies-Supplier X and Supplier Y-are minority businesses.
Given this situation, DEF should contract with

  • A. all three companies in a tiered system, with up to 40% from Supplier X and Y's total monthly business, and the remainder going to Supplier Z
  • B. Suppliers X and Y, and work with them to increase their production capability
  • C. Supplier Z only, as it can best fulfill the forecasted demand
  • D. all three companies in a tiered system, with up to 5,000 units from Supplier X, 20,000 units from Supplier Y, and the remainder from Supplier Z

Answer: A

Explanation:
Contracting with all three suppliers in a tiered system allows DEF, Inc. to diversify its supply chain, supporting both minority businesses and ensuring capacity to meet demand. This strategy balances cost, supplier diversity, and risk management, aligning with best practices in supply chain management.


NEW QUESTION # 21
A sourcing manager needs to outsource production in order to meet demand for a specific product. The internal production schedule and forecasted sales have been provided for the next nine months. Internal production follows a level schedule of 4,000 units per month and up to 7,000 units may be stored in inventory.
There is no beginning inventory for January. During what month(s) will outsourced production be required to meet forecasted sales?
MonthJanFebMarAprMayJunJulAugSep
Unit Sales3,0003,0004,0001,0009,0005,0004,0003,0005,000

  • A. May, June and September
  • B. June, July and September
  • C. July only
  • D. June only

Answer: A

Explanation:
Outsourcing is required in May, June, and September to meet sales forecasts. Internal production is capped at
4,000 units per month, and inventory can buffer only up to 7,000 units. The high sales months exceed these capacities, necessitating additional outsourcing.


NEW QUESTION # 22
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?

  • A. Spot
  • B. Speculative
  • C. Consignment
  • D. Forward

Answer: B

Explanation:
Speculative buying occurs when an organization purchases more inventory than necessary based on the forecasted increase in prices or potential shortages. This strategy aims to capitalize on market conditions, potentially resulting in financial gains. Reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management.


NEW QUESTION # 23
Which of the following is the BEST reason to use Monte Carlo simu-lations to improve a forecast7

  • A. To simulate potential outcomes and accept the resulting forecast without question
  • B. To create a forecast that is accurate but has a wider distribution of potential outcomes
  • C. To provide a single correct forecast that removes uncertainty
  • D. To increase confidence in the forecast by reducing uncertainty

Answer: D

Explanation:
Monte Carlo simulations are used to understand the impact of risk and uncertainty in prediction and forecasting models. They work by running a large number of simulations with varying input variables to produce a distribution of possible outcomes. This method allows forecasters to see a range of potential results and their probabilities, thus reducing uncertainty and increasing confi-dence in the forecast. The goal is not to provide a single correct forecast but to understand the range and likelihood of different outcomes. References:
*Thesen, A., & Travis, L. E. (2009). Simulation for Decision Making. CRC Press.
*Charnes, J. M. (2012). Financial Modeling with Crystal Ball and Excel. Wiley.


NEW QUESTION # 24
......

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