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ISM INTE Exam Syllabus Topics:

Topic	Details
Topic 1	Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.
Topic 2	Project Management: This section covers applying project management principles to supply management activities.
Topic 3	Supply Chain Strategy: This section deals with how to develop and implement material or service standardization programs and implement requirements planning to align supply management activities with organizational strategy.
Topic 4	Sales and Operations Planning (SOP): This section covers sales and Operations Planning, Demand Planning, and Forecasting.
Topic 5	Quality Management: This section covers understanding and applying quality management principles throughout the supply chain.

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ISM Supply Management Integration Sample Questions (Q52-Q57):

NEW QUESTION # 52
A firm engaging in low-cost country sourcing wants to assume the least amount of risk when importing goods into its own country. Which of the following Incoterms 2020 rules would be MOST useful in achieving this goal7

A. CPT
B. DAP
C. EXW
D. CFR

Answer: B

Explanation:
In the context of low-cost country sourcing and minimizing risk when importing goods, the selection of appropriate Incoterms 2020 rules is crucial.
DAP (Delivered at Place) is the most suitable Incoterm for a firm wanting to assume the least amount of risk.
Under DAP, the seller is responsible for all costs and risks associated with delivering the goods to a specified destination, which includes transportation, export customs clearance, and any other logistical arrangements until the goods are made available for unloading at the buyer's location. This significantly reduces the buyer's risk as the seller handles most of the transportation and logistics.
Other Incoterms, such as:
* CFR (Cost and Freight): The seller pays for the cost and freight to bring the goods to the port of destination. However, the risk is transferred to the buyer once the goods are loaded on the vessel.
* CPT (Carriage Paid To): Similar to CFR, but can be used for any mode of transport. The seller covers transport costs to a specified destination, but the risk transfers to the buyer upon handing over the goods to the first carrier.
* EXW (Ex Works): The buyer assumes all risks and costs from the seller's premises onward, making it the highest risk for the buyer.
References:
* Incoterms 2020 by the International Chamber of Commerce (ICC)
* "A Guide to Incoterms 2020" by the International Trade Centre (ITC)

NEW QUESTION # 53
UVX, Inc. is seeking suppliers of components to be used in a new heavy equipment product UVX is introducing in the marketplace. The firm conducts a market intelligence analysis and spend analysis to determine feasibility. These findings are reported to the company stakeholders, who decide to produce 25 units every two weeks. UVX issues a solicitation for bids and includes the stakeholders' requirements with the specifications.
At the close of the bidding process, UVX receives one offer that can deliver enough components to produce 15 units every four weeks. The remaining potential bidders decline altogether, citing an inability to meet UVX's specifications.
Which of the following should UVX have done in order to ensure a better response to the solicitation?

A. Perform a value analysis
B. Conduct early supplier involvement
C. Execute a supply chain management process
D. Perform supplier development

Answer: B

Explanation:
Early Supplier Involvement (ESI) is a practice where suppliers are included early in the product development process. This can help UVX, Inc. by providing the suppliers with ample time and in-formation to understand and meet the specifications and requirements. By involving suppliers ear-ly, UVX can also benefit from the suppliers' expertise in manufacturing, which may lead to better design decisions, cost savings, and improved product quality. In the scenario provided, had UVX engaged potential suppliers early on, they would have been better positioned to understand the challenges and constraints of the suppliers, potentially leading to more bids that meet the re-quirements. References:
*Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
*Cousins, P. D., Lamming, R., Lawson, B., & Squire, B. (2008). Strategic Supply Manage-ment: Principles, Theories and Practice. Pearson Education.

NEW QUESTION # 54
A project charter addresses which of the following areas?

A. Problem statement, statement of work, resource requirements, milestones, and sponsor's approval
B. Problem statement, budget, timeline, work breakdown structure, project team, and sponsor's approval
C. Problem statement, scope, constraints, milestones, team and authority, risk, and sponsor's approval
D. Problem statement, team, roles and responsibilities, cost structure, timelines, and sponsor's approval

Answer: C

Explanation:
A project charter includes a problem statement, scope, constraints, milestones, team and authority, risk, and sponsor's approval. This comprehensive document outlines the project's framework, guiding its execution and ensuring alignment with organizational goals.

NEW QUESTION # 55
A supply manager is analyzing potential costs associated with the raw materials needed for a new product launch. Tooling costs are known, but the range of forecasts for future sales-and therefore demand for materials-varies widely. Given these circumstances, the supply manager should consider using which of the following?

A. Analysis of variance
B. Critical path
C. Decision tree
D. Data mining

Answer: C

Explanation:
A decision tree is an effective tool for evaluating potential costs and benefits under conditions of uncertainty, such as varying forecasts for future sales. It allows the supply manager to visually map out different decision paths and their associated costs, probabilities, and outcomes. This helps in comparing different scenarios and making informed decisions about the raw materials needed for a new product launch. Decision trees are particularly useful in situations with multiple possible outcomes and complex decisions. References:
*Clemen, R. T., & Reilly, T. (2013). Making Hard Decisions with DecisionTools. Cengage Learning.
*Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.

NEW QUESTION # 56
A home goods manufacturer runs an annual sales promotion, and the promotion achieves success beyond the firm's expectations. As a result, the firm runs short of a critical material. The firm purchases additional material, only to be left with excess inventory once the promotion runs its course. To avoid this situation, which of the following should the organization have considered?

A. Kepner-Tregoe cycle
B. Demand planning
C. Product life cycle
D. Seasonal demand

Answer: B

Explanation:
Demand planning is a vital process that helps a company predict future demand for its products. By accurately forecasting demand, the company can adjust its production and inventory levels, avoiding both shortages and excess inventory. In this case, better demand planning would have allowed the firm to anticipate the impact of the sales promotion, preventing excess inventory.

NEW QUESTION # 57
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