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INTE Practice Questions

Supply Management Integration

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Total Questions : 167

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Question # 21

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?

Options:

A.  

Redesign product packaging to add tamper proof capabilities

B.  

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

C.  

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

D.  

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

Discussion 0
Question # 22

A cell phone retailer experiences excess inventory of a particular model due to errors in demand forecasting. In addition, remorse returns of this model are greater than anticipated. Which of the following is the BEST course of action the company can take to recover value from these assets?

Options:

A.  

Execute an online auction in the secondary market to resell the new devices and the remorse returns

B.  

Deploy a permanent e-commerce platform for the sale of the assets, as this will be useful for any future instances of excess and remorse return

C.  

Contract with a third-party specialist for the destruction of the returned assets and the resale of the raw materials that result

D.  

Use an e-commerce provider for the sale of the device using a revenue share and risk compliance model

Discussion 0
Question # 23

A company is expanding its production capability. A project manager is assigned to bring a team of stakeholders together to conduct an analysis of the situation and develop a plan. During the analysis, the project manager gains an understanding of what resources stakeholders are willing to commit, the stakeholders' expectations, and what the stakeholders have to gain from the project. This analysis is MOST likely to identify which of the following?

Options:

A.  

Potential conflicts that could impede the project's success

B.  

Additional resources that will be needed to finalize the project

C.  

How much time there is to complete the project

D.  

The roles and responsibilities of each stakeholder in the project

Discussion 0
Question # 24

XYZ, Inc. has experienced a significant increase in the number of expedited orders with a key supplier over the last few months. In this situation, XYZ should

Options:

A.  

raise the reorder point level of the products purchased from the supplier, so that XYZ will not be affected by any stock shortages

B.  

request that the supplier offer a discount on its products, as the expedited requests are a financial burden

C.  

contact a freight forwarder and sign a priority shipping agreement, so that XYZ can secure the expedited services

D.  

determine the reasons for the ongoing expedited orders, identify the root cause, and take corrective action

Discussion 0
Question # 25

A manufacturer is concerned that excess packaging materials used for a product will send the wrong message to consumers who may have selected the product based on its sustainable design. How can supply management positively impact this situation?

Options:

A.  

Verify that recyclable packaging materials are properly coded for sorting

B.  

Work with product development to ensure sustainable packaging is developed

C.  

Include a notice with the product explaining that the packaging is recyclable

D.  

Increase the amount of shrink-wrap packaging

Discussion 0
Question # 26

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?

Options:

A.  

Cause and effect analysis

B.  

Kepner-Tregoe method

C.  

Pareto analysis

D.  

Benchmarking

Discussion 0
Question # 27

BCD, Inc. owns five warehouses in various locations around the country. Three of these warehouses are performing poorly. BCD asks supply management to review options for improving this situation. Which of following is the BEST course of action for supply management to take?

Options:

A.  

Determine the optimal number and Ideal locations of warehouses in order to serve the customer base most effectively

B.  

Conduct network redesign and optimization to support the business, increase productivity, and lower costs

C.  

Close the three locations that are performing poorly, and move all the existing stock to the remaining two warehouses

D.  

Continue operating all the warehouses, but relocate the most important stock to the better-performing locations

Discussion 0
Question # 28

A company needs 1,000 widgets in Year 1 and projects that it will need 1,200 widgets in Year 2. The Year 1 order cost for widgets is $5, and the Year 1 carrying cost is S4. A recent contract renewal with the company's 3PL warehouse supplier will increase carrying costs in Year 2 to S6. How, if at all, will the Economic Order Quantity (EOQ) be affected?

Options:

A.  

The EOQ will increase in Year 2 to 54 units.

B.  

The EOQ will stay the same in Year 2.

C.  

The EOQ will decrease in Year 2 to 32 units.

D.  

The EOQ will decrease in Year 2 to 45 units.

Discussion 0
Question # 29

A specialized sewing shop quilts fabrics for use in upholstered furniture. Various patterns are produced on different machines, each of which has its own set-up routine. At times, one type of machine is idle while others are backed up. The sewing floor supervisor finds new software which makes the machines' patterns interchangeable. Which of the following is the MOST likely result of upgrading to the new software?

Options:

A.  

Decreased cycle time and increased set up costs

B.  

Increased productivity and decreased cycle time

C.  

Increased equipment costs and reduced inventory

D.  

Reduced inventory and increased productivity

Discussion 0
Question # 30

A distributor receives orders from a customer for the following parts:

PO1801: 6 pcs of Item #XYZ-06

3 pcs of Item #XYZ-09

PO1802: 3 pcs of Item #XYZ-09

Item #XYZ-06 is currently out of stock. The shipping manager contacts the customer, who gives authorization to ship the available parts and back order the rest. What is the line count fill rate for the customer?

Options:

A.  

50%

B.  

25%

C.  

66%

D.  

33%

Discussion 0
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