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Dumps Questions [2024] Pass for INTE Exam
ISM INTE Exam Syllabus Topics:
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NEW QUESTION # 59
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?
- A. Determine the optimal number and Ideal locations of warehouses in order to serve the customer base most effectively
- B. Continue operating all the warehouses, but relocate the most important stock to the better-performing locations
- C. Conduct network redesign and optimization to support the business, increase productivity, and lower costs
- D. Close the three locations that are performing poorly, and move all the existing stock to the remaining two warehouses
Answer: C
Explanation:
Conducting network redesign and optimization is the best course of action. This approach analyz-es the entire supply chain network to improve performance, increase productivity, and reduce costs, ensuring that warehouse locations and operations align with business goals and customer needs.
NEW QUESTION # 60
Which of the following is the BEST reason to use Monte Carlo simu-lations to improve a forecast7
- A. To provide a single correct forecast that removes uncertainty
- B. To simulate potential outcomes and accept the resulting forecast without question
- C. To create a forecast that is accurate but has a wider distribution of potential outcomes
- D. To increase confidence in the forecast by reducing uncertainty
Answer: D
Explanation:
Monte Carlo simulations are used to understand the impact of risk and uncertainty in prediction and forecasting models. They work by running a large number of simulations with varying input variables to produce a distribution of possible outcomes. This method allows forecasters to see a range of potential results and their probabilities, thus reducing uncertainty and increasing confi-dence in the forecast. The goal is not to provide a single correct forecast but to understand the range and likelihood of different outcomes. References:
*Thesen, A., & Travis, L. E. (2009). Simulation for Decision Making. CRC Press.
*Charnes, J. M. (2012). Financial Modeling with Crystal Ball and Excel. Wiley.
NEW QUESTION # 61
Selection of a supplier takes place during which of the following phases of the project management process?
- A. Project monitoring and control
- B. Project planning
- C. Project execution
- D. Project initiation
Answer: B
Explanation:
In project management, supplier selection typically occurs during the project planning phase. This phase involves defining the project's scope, setting objectives, and identifying necessary resources, including suppliers. References to the PMBOK Guide support that procurement planning and supplier selection are integral components of project planning.
NEW QUESTION # 62
A company moves its warehouse operations to a new location. Soon after, the company experiences higher shipping costs and delays in meeting delivery dates. Which of the following is the MOST likely cause of these increased costs and delays?
- A. The transportation supplier is charging more to drive to the new warehouse.
- B. The new warehouse is farther away from suppliers than the previous one.
- C. The transportation supplier's drivers are having difficulty accessing the new warehouse.
- D. The new warehouse is staffed with inexperienced employees.
Answer: C
Explanation:
Access issues at the new warehouse can lead to increased delivery times and shipping costs, as drivers may face delays or require alternative routes. Resolving access problems is crucial for restoring efficient operations.
NEW QUESTION # 63
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'
- A. Consignment
- B. ABC analysis
- C. Vendor-managed inventory
- D. Re-order point system
Answer: C
Explanation:
Vendor-managed inventory (VMI) places the responsibility on the supplier to maintain stock lev-els at the purchaser's facility. This system enhances supply chain efficiency, reduces inventory costs, and ensures timely replenishment based on actual consumption patterns.
NEW QUESTION # 64
A utility installation company conducts an annual review of its assets. Included with its equipment are several trenching machines that were purchased three years ago at a cost of $85,000 each. How should this value be categorized in the asset management system?
- A. Equity
- B. Book
- C. Market
- D. Historic
Answer: D
Explanation:
The value of the trenching machines, purchased at a cost of $85,000 each three years ago, should be categorized as historic in the asset management system. This refers to the original purchase cost of the assets, which is recorded for accounting and asset tracking purposes. It provides a baseline for depreciation calculations and asset management. References: Accounting standards specify that assets should be recorded at their historical cost to provide accurate financial reporting.
NEW QUESTION # 65
How long after the delivery date must a freight claim on a motor carriage shipment be presented and filed with the carrier in the United States'
- A. 120 days
- B. 9 months
- C. 30 days
- D. 3 months
Answer: B
Explanation:
In the United States, freight claims for motor carriage shipments must be filed within nine months of the delivery date. This timeframe is mandated by regulations to allow shippers and carriers to address disputes over transportation damages or losses.
NEW QUESTION # 66
Which of the following requires investment recovery action'
- A. Finished goods
- B. Slow-moving materials
- C. Raw materials
- D. Work-in-process
Answer: B
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 # 67
A supply manager receives four bids for a special piece of equipment. The equipment is large and does not fit into a normal sea container. The bids are as follows:
Supplier 1Supplier 2Supplier 3Supplier 4
Bid$2,110,000$2,105,000$2,110,000$2,115,000
Incoterms 2020 RuleGIFDPUFCAFAS
The costs of transportation, included within each bid price, are as follows:
Responsibility for Payment to CarrierTransfer of Risk to BuyerCost of Transportation Supplier, before goods are loaded onto vessel: purchaser thereafterAlongside vessel nominated by purchaser$50,000 Supplier to named port of destination: purchaser thereafterOnce goods have been loaded onto the vessel$55,000 Supplier to named place of destination once unloaded: purchaser thereafterOnce goods have been unloaded at named place of destination540,000 PurchaserWhere goods are loaded onto the collecting vehicle$30,000 The supply manager has taken account the firm's risk profile and wishes to use FCA for its Incoterms 2020 rules. Adjusting the pricing in the tenders to reflect this, which supplier should be awarded the contract (based on the lowest price)?
- A. Supplier 3
- B. Supplier 2
- C. Supplier 4
- D. Supplier 1
Answer: A
Explanation:
Using FCA Incoterms means the buyer assumes responsibility at the point where goods are loaded onto the transport. Adjusting for transportation costs, Supplier 3, with a lower base bid price and assuming buyer's responsibility earlier, results in the lowest adjusted total cost. This selection balances cost and risk, aligning with the buyer's preferred Incoterm.
NEW QUESTION # 68
A supply manager learns that parts used in manufacturing are arriving scratched and must be polished before use, thereby hampering production. Sending the parts back to the supplier is not an option, as they are needed to meet increased demand. Which of the following will be MOST helpful in resolving this problem?
- A. Acceptance/rejection history
- B. Corrective action plan
- C. Supplier certification
- D. Process control
Answer: B
Explanation:
Implementing a Corrective Action Plan (Option C) will be most helpful in resolving the issue of scratched parts. This plan involves identifying the root cause of the problem, implementing changes to prevent recurrence, and monitoring the effectiveness of these changes. A structured approach to corrective action can address quality issues efficiently and prevent future disruptions. Reference: Quality management systems and corrective action planning.
NEW QUESTION # 69
Which of the following will be MOST useful for measuring service quality?
- A. Invoice procedures
- B. Warranty response
- C. Accurate documentation
- D. Fitness for purpose
Answer: D
Explanation:
Fitness for purpose" measures service quality by assessing whether a product or service meets the intended use and customer requirements. It focuses on customer satisfaction and the degree to which the service fulfills its purpose, which is crucial for evaluating overall service quality. This approach helps organizations align their offerings with customer expectations, ensuring high standards of service delivery.
NEW QUESTION # 70
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?
- A. Pareto analysis
- B. Cause and effect analysis
- C. Kepner-Tregoe method
- D. Benchmarking
Answer: A
Explanation:
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.
NEW QUESTION # 71
Based on the global reach and complexity of supply chains, resiliency planning and risk assessment are necessary because of which of the following'
- A. Lack of training within the organization
- B. Natural and man-made disasters
- C. Uncollected receivables
- D. Supplier bankruptcies in competitive markets
Answer: B
Explanation:
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.
NEW QUESTION # 72
GHI, Inc. is a U.S.-based company with an expanding product line. GHI widens its sourcing of components to global suppliers, including suppliers in countries which are not included in trading blocs or bilateral agreements with the United States. Compliance with which of the following will MOST likely reduce GHI's administrative burden of cargo inspections on materials imported from these sources?
- A. Customs-Trade Partnership Against Terrorism (C-TPAT)
- B. Foreign Corrupt Practices Act (FCPA)
- C. United Nations Convention on Contracts for the International Sale of Goods (CISG)
- D. Global Environmental Management Initiative (GEMI)
Answer: A
Explanation:
GHI, Inc. would benefit most from compliance with the Customs-Trade Partnership Against Terrorism (C-TPAT) (Option D). This initiative helps reduce the administrative burden of cargo inspections by establishing security guidelines and facilitating faster customs processing for participating companies. By aligning with C-TPAT, GHI can ensure smoother import procedures, even when dealing with countries outside of specific trading blocs. Reference: U.S. Customs and Border Protection information on C-TPAT.
NEW QUESTION # 73
MNO, Inc. is a national retail home goods chain formed of local franchisees. Each franchisee uses its own returns processing systems. A key advertising point for MNO is its liberal return policy, which is part of its overall focus on excellent customer service. While feedback from customers is positive regarding MNO's return policy, there have been inquiries as to why stores handle returns via different processes. MNO's supply manager suggests the implementation of a reverse supply chain to deal with this issue and possibly yield cost enhancement opportunities. In order to implement this, which of the following is the FIRST course of action the supply manager should take''
- A. Hire an external returns specialist to monitor the situation
- B. Define a consistent return process and integrate it into the forward supply chain
Answer: B
Explanation:
Implementing a reverse supply chain requires first defining a consistent return process that can be integrated into the existing forward supply chain. This ensures that all franchisees follow the same procedures for handling returns, which enhances efficiency, customer satisfaction, and potentially reduces costs.
Standardizing the return process also allows for better tracking and management of returned goods, improving overall supply chain performance. By addressing this foundational step first, MNO, Inc. can ensure a smoother implementation of the reverse supply chain. References:
*Rogers, D. S., & Tibben-Lembke, R. (2001). An Examination of Reverse Logistics Practic-es. Journal of Business Logistics, 22(2), 129-148.
*Blanchard, D. (2010). Supply Chain Management Best Practices. John Wiley & Sons.
NEW QUESTION # 74
An organization's capital expenditure policies are MOST closely aligned with which of the following types of assets?
- A. Intangible
- B. Fixed
- C. Current
- D. Deferred
Answer: B
Explanation:
Capital expenditure policies primarily relate to fixed assets, as they involve investments in long-term assets that are capitalized and depreciated over time. Reference: Horngren, C. T., Datar, S. M., & Rajan, M. V.
(2015). Cost Accounting: A Managerial Emphasis.
NEW QUESTION # 75
For many years, WXY Company's policy has been to buy only domestically manufactured MRO materials and maintain quantities of these materials at each operating location. A recent analysis reveals that this practice is not the most efficient and effective way for this firm to manage its MRO purchases. Given this situation, which of the following is the BEST course of action for WXY's supply management department to take?
- A. Determine what supplier can deliver the best value, and contract with that supplier
- B. Outsource the inventory fulfillment to a lower cost third party
- C. Create a cross-functional team of stakeholders to determine future actions
- D. Centralize its inventory into one location to reduce overall storage costs
Answer: C
Explanation:
Forming a cross-functional team ensures diverse perspectives and expertise in decision-making, leading to well-rounded strategies for managing MRO materials more efficiently. It fosters collaboration and alignment across departments. Reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016).
Purchasing and Supply Chain Management.
NEW QUESTION # 76
Material accumulated for a well-defined future need is called
- A. buffer stock
- B. continuous inventory
- C. anticipation inventory
- D. safety stock
Answer: C
Explanation:
Anticipation inventory refers to stock that is accumulated in advance of expected demand increases, such as seasonal spikes or promotions. This type of inventory helps companies manage supply chain fluctuations and maintain smooth operations. Reference: Chopra, S., & Meindl, P. (2016). Supply Chain Management:
Strategy, Planning, and Operation.
NEW QUESTION # 77
An organization purchases materials beyond current and anticipated requirements in expectation of a price increase or shortage, in the hope that it will profit from the sale of the materials at a later date. This describes which of the following buying strategies?
- A. Spot
- B. Consignment
- C. Speculative
- D. Forward
Answer: C
Explanation:
Speculative buying occurs when an organization purchases more inventory than necessary based on the forecasted increase in prices or potential shortages. This strategy aims to capitalize on market conditions, potentially resulting in financial gains. Reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management.
NEW QUESTION # 78
Through cycle counting, a supply manager learns that inventory inaccuracies are being caused by errors made when received goods are entered into the company's enterprise business system. Which of the following is the FIRST course of action the supply manager should take to reduce these inaccuracies?
- A. Review the warehouse personnel training materials to determine if there are any deficiencies, and develop a plan for making the necessary corrections
- B. Determine how the KPIs for receiving accuracy are being measured, and if there is a disconnect between the KPIs and the cycle count data
- C. Form a process improvement team using quality management techniques to determine the cause of the errors and make recommendations for their elimination
- D. Implement verification steps as data are entered into the system, and review available data to determine the scope and depth of the issue
Answer: C
Explanation:
Forming a process improvement team using quality management techniques is the first course of action. This team can analyze the root causes of errors in data entry, using systematic methods to identify and eliminate inaccuracies, thereby improving the accuracy of inventory records.
NEW QUESTION # 79
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