Master ISM INTE Exam with Reliable Practice Questions
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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?
Correct : 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.
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Identifying risks is MOST associated with which of the following stages of a project?
Correct : 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.
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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?
Correct : 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.
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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'
Correct : B
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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:
Month Jul Aug Sep Oct Nov Dec Jan Feb
Unit Sales 100 150 200 600 1,400 2,200 4,000 10,000
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
Correct : B
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.
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