ISM INTE Exam Questions Instant Access - No Installation Required

Question 1

A retailer of high-value consumer electronics experiences a significant increase in theft within its forward and reverse logistics operations, both of which are subcontracted to third parties. Which of the following is the FIRST course of action the retailer should undertake in order to mitigate loss within the subcontractors' chain of custody?

ARedesign product packaging to add tamper proof capabilities

BInvest in a Transportation Management System in order to track the movement of products in real time

CInvest in radio-frequency identification (RFID) technology, in order to track inventory within the entire supply chain

DAssess internal process flow diagrams and those of the subcontractors to identify areas where risk of loss can occur

Answer : D

The first course of action should be to assess internal process flow diagrams and those of the subcontractors to identify areas where the risk of loss can occur. Understanding the processes helps pinpoint vulnerabilities and implement targeted security measures. This approach ensures that the root causes of theft are addressed before investing in technology solutions. Reference: Risk management and loss prevention strategies in logistics.

Question 2

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?

ALeast squares regression

BWinters model

CSingle period model

DBox-Jenkins method

Answer : C

The single period model is suitable for managing demand for perishable items with fluctuating customer volume. It helps in optimizing inventory levels for items with limited shelf life, reducing waste and stockouts. Reference: Inventory management techniques emphasize the use of single period models for perishable goods to balance supply and demand effectively.

Question 3

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

AExecution

BStrategy and planning

CAnalysis

DDemand and supply management

Answer : B

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. Reference: CPFR (Collaborative Planning, Forecasting, and Replenishment) guidelines emphasize starting with strategic alignment.

Question 4

A firm wants to contract with two suppliers to develop a cellphone tower servicing five million customers. The new technology is required within the next 36 months and has a large budget. The following suppliers are under consideration:

* Supplier A - Has been in business for 20 years; however, every two to three years, its labor force goes on strike

* Supplier B - An established business located in an overseas country which may charge an additional 2% duty on some imported goods

* Supplier C - An established business which has been closed on recent occasions by governing authorities due to health and safety violations

* Supplier D - Has the smallest facilities and workforce of the four, but will be expanding over the next three months and has successfully subcontracted work in order to meet timelines

Based on this information, which two suppliers offer the BEST capacity and capability?

ASuppliers B and D

BSuppliers C and D

CSuppliers A and C

DSuppliers A and B

Answer : A

Suppliers B and D offer the best capacity and capability for the project. Supplier B is established and can handle large budgets, despite potential duties, while Supplier D is expanding and has a successful track record of subcontracting to meet deadlines. These factors make them the most reliable choices for meeting the project's requirements within the 36-month timeline. Reference: Supplier selection criteria in supply chain management.

Question 5

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?

AOngoing project monitoring

BComparison of actual results with established goals

CAlignment of departmental priorities with those of the parent organization

DUse of pricing data to forecast trends

Answer : D

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. Reference: Effective budgeting in supply chain management requires trend analysis and forecasting to anticipate market changes.

Question 6

A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The supply manager uses the material forecast from the material requirements planning (MRP) software and the storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which of the following will impact this forecast MOST significantly?

AValidation of data by supply management

BThe type of planning system used

CThe interface between the MRP software and the WMS

DAccounting for storage of works in progress

Answer : C

The interface between the MRP software and the WMS is critical because it ensures real-time data exchange, affecting forecast accuracy. MRP systems calculate material needs based on production schedules, while WMS manages inventory levels and storage. Any issues in their interface could lead to data discrepancies, impacting the forecast significantly. Effective integration allows for synchronized operations and reduces errors in inventory management, ultimately improving supply chain efficiency.

Question 7

A manufacturer purchased a piece of production equipment over 20 years ago. The equipment is still in use, though for the last few quarters, it has been getting more difficult to keep it operational, as many of the required components are turning obsolete. According to the service agreement, the supplier must ensure the availability of the component parts for 3 more years. In this situation, the buying firm should expect that the supplier will

Acreate a list of components expected to become obsolete in the next 3 years, identify new parts to replace the existing ones, and propose the plan to the buyer

Bexplain the situation to the buyer and suggest that it source the required components on its own

Cpropose to revise the remaining timeline of the service agreement from 3 years to 6 months

Dcreate a list of components expected to become obsolete within the next 3 years, and purchase the required parts before they are actually needed, in order to support the agreement

Answer : D

The supplier should proactively identify components expected to become obsolete and purchase the necessary parts before they are needed. This ensures compliance with the service agreement and supports the continued operation of the buyer's equipment, minimizing downtime and operational disruption. Reference: Supplier agreements and obsolescence management.

ISM Supply Management Integration INTE Exam Questions