ISM Supply Management Integration Exam Practice Test

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Total 167 questions
Question 1

Which of the following buying strategies refers to planning inbound material purchases and flows without the need for significant inventory levels7

Answer : A

Buying to requirements involves planning purchases based on actual needs, minimizing inventory levels. This strategy supports lean inventory practices and reduces carrying costs, aligning procurement with just-in-time principles to enhance efficiency and responsiveness in supply chain operations.

Question 2

Based on the global reach and complexity of supply chains, resiliency planning and risk assessment are necessary because of which of the following'

Answer : B

Resiliency planning and risk assessment in global supply chains are critical due to the potential impact of natural and man-made disasters. These events can disrupt operations, affecting logistics, supply continuity, and financial performance. Effective risk management strategies mitigate such disruptions, ensuring supply chain stability.

Question 3

Which of the following holds the supplier responsible for ensuring that stock is maintained at appropriate levels and replenished when needed at the purchaser s facility'

Answer : B

Question 4

A supply manager collects data on all suppliers regarding their on-time delivery performance. The data are sorted in order of supplier percentage of on-time delivery. This type of analysis is known as which of the following?

Answer : C

Pareto analysis involves sorting data to identify the most significant factors---in this case, supplier performance on on-time delivery. This analysis helps prioritize supplier management efforts based on their impact, consistent with the 80/20 rule.

Question 5

Identifying risks is MOST associated with which of the following stages of a project?

Answer : D

Risk identification primarily occurs during the planning phase of a project. This stage involves assessing potential risks that could impact project objectives, allowing for the development of mitigation strategies and contingency plans.

Question 6

RST, Inc. is an electronics manufacturer. The profit margins for a major product developed by RST are falling. Accordingly, the firm asks the supply manager to identify ways to reduce the product's costs. The product includes a high-tech, high-cost component for which only one source is able to meet quality standards. Which of the following is the BEST way the supply manager can achieve cost reductions from this supplier?

Answer : A

A should-cost analysis helps understand the component's cost structure and identify potential cost-saving opportunities. This method provides a basis for negotiations and ensures that the supplier's pricing is fair, fostering transparency and cost management.

Question 7

An engineering team requests assistance from a supply manager to resolve an issue related to a new product under development. The product is seasonal, and the organization has a short lead time to bring the product to market. Given this situation, which of the following is the BEST course of action for the supply manager to take7

Answer : B

Given the short lead time and the need for rapid market entry, leveraging an existing strategic supplier's capabilities is optimal. This approach minimizes delays and leverages established relationships and processes, ensuring the product can be developed and delivered efficiently.

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Total 167 questions