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ISM Supply Management Integration Sample Questions (Q70-Q75):

NEW QUESTION # 70
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?

A. The reason for choosing sea transportation over air
B. Whether or not export regulations will be followed
C. The details of the proposed Incoterms 2020 rule
D. The risks involved in the shipping terms

Answer: D

Explanation:
The buyer should be most concerned about the risks associated with the shipping terms, especially as they take possession once the goods are loaded. This includes potential liabilities and loss during transit. Understanding these risks is critical for mitigating potential issues. Reference: Incoterms 2020 by ICC.

NEW QUESTION # 71
Which of the following is MOST likely to be an advantage of a standardization program?

A. Improved supplier flexibility
B. Reliance on fewer suppliers
C. Creation of new supplier relationships
D. Consistent quality

Answer: D

Explanation:
Standardization ensures that products meet uniform quality standards, reducing variability and enhancing customer satisfaction. This advantage is vital in maintaining brand reputation and streamlining production processes.

NEW QUESTION # 72
A manufacturing firm redesigns its premier product to benefit from material standardization. This will entail re-tooling its manufacturing facility. The firm conducts a cost analysis using net present value (NPV) and considers four options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations. The discount rate for NPV calculation is 10% per annum, and material costs are fixed for the next 3 years. The firm follows a three-year planning cycle and wishes to apply NPV over that time period to the calculations:
Option 1Option 2Option 3Option 4
Re-tooling Costs$0$500,000$800,000$950,000
Annual Material Costs$1,100,000$900,000$800,000$750,000
NPV = £ r.i (l*r/
What is the 3-year NPV of the best option'

A. $2,692,712
B. $2,735,537
C. $2,961,983
D. $2,939,000

Answer: C

Explanation:
The NPV calculation takes into account the initial re-tooling costs and the discounted future material costs over three years. Option 3 presents the best NPV, making it the optimal choice for maximizing value from material standardization and investment in re-tooling.

NEW QUESTION # 73
Which of the following requires investment recovery action'

A. Raw materials
B. Work-in-process
C. Slow-moving materials
D. Finished goods

Answer: C

Explanation:
Investment recovery focuses on recouping value from obsolete or excess inventory. Slow-moving materials often require such actions to minimize losses and free up resources. This practice is part of effective inventory management and resource optimization strategies.

NEW QUESTION # 74
A company finds that tracking demand for products sold at its retail outlets makes forecasting a challenge.
Which of the following would be MOST useful in providing rapid updates when dealing with suppliers?

A. Regression analysis of future sales
B. Probability modeling
C. Safety stock review
D. Point-of-sale system

Answer: D

Explanation:
A point-of-sale (POS) system would be most useful for providing rapid updates when dealing with suppliers.
POS systems capture real-time sales data, allowing for accurate and timely tracking of demand at retail outlets.
This information aids in precise forecasting and inventory management, facilitating better supplier communication. Reference: Retail management and technology integration in supply chains.

NEW QUESTION # 75
......

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Top Features of PassReview Updated INTE Exam Practice Questions

100% Pass Quiz 2025 ISM INTE: Authoritative Reliable Supply Management Integration Test Pattern

ISM Supply Management Integration Sample Questions (Q70-Q75):

Free PDF INTE - Supply Management Integration Pass-Sure Reliable Test Pattern

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