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INTE Supply Management Integration Questions and Answers

Questions 4

Which of the following refers to a procedure whereby data are collected and compared to requirements in order to make an acceptance decision?

Options:

A.

Process mapping

B.

Inspection

C.

Internal audit

D.

Peer review

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Questions 5

A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?

Options:

A.

Vendor-managed inventory

B.

Collaborative planning, forecasting and replenishment

C.

Sales and operations planning

D.

Enterprise resource planning

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Questions 6

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?

Options:

A.

The risks involved in the shipping terms

B.

Whether or not export regulations will be followed

C.

The reason for choosing sea transportation over air

D.

The details of the proposed Incoterms® 2020 rule

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Questions 7

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?

Options:

A.

Consignment

B.

Forward

C.

Speculative

D.

Spot

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Questions 8

A supply manager is responsible for the raw material supply to a manufacturing operation. After three months of successfully meeting key performance indicators (KPIs), the supply manager conducts a meeting with stakeholders—including engineers, manufacturing technicians, supply chain personnel, and finance team members—to solicit their feedback regarding the raw material supply chain. Which of the following quality management principles is the supply manager executing?

Options:

A.

Implementing requirements planning to align supply management activities with organizational strategy

B.

Creating systems and process improvements to help the organization meet sales goals

C.

Structuring the supply chain in support of the organization's business strategy

D.

Implementing continuous improvement processes within the supply chain

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Questions 9

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

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Questions 10

A manufacturer receives notice from one of its largest customers stating that, from this point on, it will only accept environmentally friendly boxes for packaging. The manufacturer checks the remaining packaging in its inventory and finds that it still has over six months' worth of boxes that are not made of environmentally-friendly materials. These boxes are custom-designed and cannot be returned to the packaging material supplier. In this situation, the manufacturer would be BEST served by doing which of the following?

Options:

A.

Disposing of the existing boxes and switching to environmentally-friendly materials

B.

Explaining the situation to the customer and offering the products in the existing boxes at a discounted price

C.

Negotiating a grace period with the customer to allow a gradual switch from the existing design to the new one

D.

Using the leftover boxes for internal purposes within the organization

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Questions 11

A sourcing manager needs to outsource production in order to meet demand for a specific product. The internal production schedule and forecasted sales have been provided for the next nine months. Internal production follows a level schedule of 4,000 units per month and up to 7,000 units may be stored in inventory. There is no beginning inventory for January. During what month(s) will outsourced production be required to meet forecasted sales?

MonthJanFebMarAprMayJunJulAugSep

Unit Sales3,0003,0004,0001,0009,0005,0004,0003,0005,000

Options:

A.

June, July and September

B.

June only

C.

July only

D.

May, June and September

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Questions 12

Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time. Which of the following should the buying firm do in this instance?

Options:

A.

Work with engineering to determine the impact each defect type has on the customer base and assist the supplier in prioritizing and solving the defect type with the highest customer impact first

B.

Calculate the number of times each of the defect types have occurred over the past 90 days, and instruct the supplier to work on finding the root cause of the defect with the highest frequency

C.

Calculate the number of times each of the defect types have occurred over the past two weeks, and instruct the supplier to work on finding the root cause of the defect with the highest frequency

D.

Work with engineering to submit three corrective action requests and ask the supplier to address all three

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Questions 13

A manufacturing firm is preparing a materials requirement plan for the next six weeks. The information is as follows:

Master Production Schedule

Week123456

Item A51015202530

Other Relevant Information

ItemItem's ParentItem's Lead TimeItem's Lot SizeItem's Current Inventory

ANone1 weekLFL20

BA2 weeks105

CB3 weeks205

How many levels does the product structure have in the bill of materials?

Options:

A.

1

B.

2

C.

0

D.

3

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Questions 14

Which of the following refers to a computer-based system that determines the purchase requisition requirements that go into the manufacture of end items, and addresses an organization's operational, financial and marketing strategies?

Options:

A.

Electronic data interchange (EDI)

B.

Material requirements planning (MRP)

C.

Distribution requirements planning (DRP)

D.

Manufacturing resource planning (MRP II)

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Questions 15

When an organization is devising a long-term forecast, consulting external sources of information is MOST useful

Options:

A.

for setting realistic organizational goals

B.

in gathering market intelligence

C.

in eliminating irrelevant data

D.

for benchmarking a specific competitor

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Questions 16

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.

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Questions 17

FGH, Inc. is a beverage manufacturer. FGH is having difficulty coordinating daily delivery requirements of bottles from Supplier X. Delivery schedules are set weekly, but often need to be changed. However, the supplier has otherwise established itself as reliable. In the hope of speeding up the replenishment process and reducing coordination efforts, FGH is prepared to share production and inventory information with Supplier X. In this situation, which of the following should FGH implement with Supplier X?

Options:

A.

Supplier-managed inventory (SMI)

B.

Supplier quality program (SQP)

C.

Supplier relationship management (SRM)

D.

Vendor scheduling (VS)

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Questions 18

A company that manufactures rubber balls wishes to discontinue production and move into the golf ball industry. Consider the following steps in the disposition of the current inventory of rubber balls:

I. Dispose of the rubber balls per local regulations

II. Sell the rubber balls on the open market

III. Grind up the rubber balls and donate the material for a playground in the community

IV. Work with engineering to determine if the rubber can be used in the new golf ball line

In order to maximize recovery of its investment, which of the following is the BEST order for the application of these steps (from first to last)?

Options:

A.

II, I, II, IV

B.

II, IV, I, III

C.

IV, I, II, III

D.

I, III, II

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Questions 19

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’’

Options:

A.

Define a consistent return process and integrate it into the forward supply chain

B.

Hire an external returns specialist to monitor the situation

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Questions 20

During an inventory review, a supply manager confirms that parts used for the maintenance of equipment sold during the previous year are still being stored in the warehouse. These parts cannot be used on current equipment. Which of the following BEST describes these parts’

Options:

A.

Surplus

B.

Excess

C.

Obsolete

D.

Expired

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Questions 21

FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asia. The equipment is to be installed in a new auditorium that FGH is constructing. Failure to complete the project in time for its scheduled opening will subject FGH to penalties. FGH receives notice from the supplier that the equipment is packaged and ready to ship as planned via ocean freight but that an impending storm may cause delays. FGH needs to stay within budget. In this situation, which of following is the BEST course of action for FGH to take?

Options:

A.

Wait until the storm's path can be predicted more accurately

B.

Evaluate options for a multimodal shipment

C.

Arrange for immediate air freight of the equipment

D.

Use ocean freight after the storm subsides

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Questions 22

To ensure items frequently employed in production are immediately available for Kanban replenishment, a storage location is established specifically for these items. This inventory location is known as a(n)

Options:

A.

overflow location

B.

random location

C.

point-of-use location

D.

fixed location

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Questions 23

A warehouse manager notices that there has been a constant shortage of 4K TVs for the last few months. An investigation finds that the TVs have been stolen, even though warehouse access is strictly controlled by employee ID badge. In this situation, the warehouse manager's FIRST course of action should be to

Options:

A.

set up a security camera inside the warehouse facility

B.

perform more frequent cycle counting on the 4K TVs and monitor the transaction history more closely

C.

set up a cage and lock the storage location of the 4K TVs

D.

call a meeting to inform the employees of the finding, advising them to be aware of the situation

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Questions 24

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?

Options:

A.

Create a cross-functional team of stakeholders to determine future actions

B.

Centralize its inventory into one location to reduce overall storage costs

C.

Outsource the inventory fulfillment to a lower cost third party

D.

Determine what supplier can deliver the best value, and contract with that supplier

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Questions 25

A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:

MonthJanFebMarAprMayJunJulAug

Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000

Production20,00020,00020,00020,00020,00020,00020,00020,000

The supply management department learns that one of its retailers is planning a promotional event on August 1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of January, and maximum inventory holding is 15,000 units.

How many units per month should production increase in order to meet the requirements of its retailer and minimize overall inventory levels?

Options:

A.

2,000

B.

2,500

C.

14,000

D.

2,715

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Questions 26

Which of the following describes a market structure where there are few sellers and many buyers and where price is controlled by either an industry leader or a cartel?

Options:

A.

Monopsony

B.

Perfect competition

C.

Monopoly

D.

Oligopoly

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Questions 27

According to Six Sigma methodology, what percentage of parts should be free from manufacturing defects?

Options:

A.

99%

B.

100%

C.

99.99966%

D.

99.66666%

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Questions 28

Which of the following will be MOST useful for measuring service quality?

Options:

A.

Invoice procedures

B.

Fitness for purpose

C.

Warranty response

D.

Accurate documentation

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Questions 29

A supply manager is seeking to align the procurement function with the organization's business strategy and growth potential. Which of the following is the BEST initial course of action to take in this instance7

Options:

A.

Schedule a meeting with each functional area to learn about their procurement requirements

B.

Consult with accounting to obtain information on the financial relationships with each current supplier

C.

Develop a recommendation on procurement activities and the necessary interactions with external stakeholders

D.

Review current procurement activities and assess if they are strategic or tactical and how they contribute value

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Questions 30

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’

Options:

A.

Consignment

B.

Vendor-managed inventory

C.

Re-order point system

D.

ABC analysis

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Questions 31

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

Options:

A.

CFR

B.

CPT

C.

EXW

D.

DAP

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Questions 32

A company produces and distributes its products in the continental United States, mostly to customers located in metropolitan areas. The company conducts an ABC analysis to classify items, and determines that A and B items have variable demand, while C items have relatively stable demand. The logistics group wants to use this information to minimize transportation costs. Which of the following is the BEST combination of modes for the firm to use in order to minimize costs?

Options:

A.

Use water service for A and B items, motor carriage for C items, and air freight only as needed

B.

Use intermodal rail for A and B items, air freight for C items, and motor carriage only as needed

C.

Use air freight for A and B items, motor carriage for C items, and intermodal rail only as needed

D.

Use motor carriage for A and B items, intermodal rail for C items, and air freight only as needed

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Questions 33

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?

Options:

A.

Execute a supply chain management process

B.

Perform a value analysis

C.

Conduct early supplier involvement

D.

Perform supplier development

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Questions 34

A firm hires a contractor to build a new warehouse. During construction, the firm decides it wants to modify the contract to add an office area to the facility. Which of the following is the BEST course of action for the firm to take in this situation?

Options:

A.

Verbally notify the contractor of the changes, negotiate the costs, and instruct the contractor to proceed with the change and write the change order at the time of project completion

B.

Develop a written description of the changes, and negotiate a written change order that minimizes the cost impact while work continues on the warehouse

C.

Stop construction on the warehouse and negotiate the change order with the contractor before resuming work

D.

Advise the contractor on how much the firm has available to build the new office area, and write a change order based on the final amount of the revisions

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Questions 35

A company is designing a new warehousing strategy. The firm wants to hire the most qualified personnel, utilize the best technology, and minimize the repetition of inventory across operations. Which of the following warehousing strategies will be BEST suited toward attaining the organization's goals?

Options:

A.

Third-party

B.

Hub and spoke

C.

Centralized

D.

Decentralized

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Questions 36

A supply manager for JKL, Inc. is negotiating a contract with a supplier of a component. The component will be used in a new product JKL Is manufacturing and plans to bring to market early next year. Which of the following will be the MOST important provision for the supply manager to negotiate for?

Options:

A.

A fixed cost of raw materials that will remain stable over the following year

B.

A low minimum order quantity that allows flexibility to buy additional materials

C.

A sustainable packaging solution with recyclable transport crating

D.

Ownership of the molds and dies used to manufacture the component

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Questions 37

A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should

Options:

A.

verify that the employee knows how to operate the warehouse equipment and tools correctly

B.

demonstrate how to package products in the correct manner, so that the employee can begin with packaging assignments

C.

explain the company's safety policy and verify that the employee understands all safety-related requirements

D.

show the employee how to separate disposable vs recyclable packaging, to ensure the employee understands environmental compliance requirements

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Questions 38

Which of the following is the PRIMARY benefit of project governance?

Options:

A.

Projects considered essential are prioritized over others already in progress.

B.

Business projects need less monitoring, which allows local managers freedom to execute their projects.

C.

Projects that are behind targets may be allowed to continue, if the cause of the delay can be resolved.

D.

Business cases and associated benefits are subject to effective scrutiny, which helps with setting project timelines.

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Questions 39

A company that has never focused on supply management in the past is now faced with increasing competition from new, innovative products entering its market. As a result, the firm's business strategy includes an increased focus on cost containment. Given this situation, which of the following should the company do FIRST?

Options:

A.

Create an executive position for supply management

B.

Standardize global processes

C.

Raise the reporting level of key supply management personnel

D.

Consolidate tactical supply management positions where possible

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Questions 40

A firm completes its near level production, five-month demand plan for the next business planning cycle:

Month 1Month 2Month 3Month 4Month 5

Demand Forecast15,00020,00025,00025,00018,000

Production Plan (Regular Time)20,00020,00020,00020,00018,000

Production Plan (Overtime)5,000

Ending Inventory5,0005,000

Average Inventory2,5005,0002,500

Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5

Hires7

Layoffs2

Actual Workforce Size132020202018

Regular Time Hours Required2,0002,0002,0002,0001,800

Overtime Hours Required500

Costs

Regular time cost per unit$15

Overtime cost per unitS25

Monthly inventory cost per unit$1

Cost of hire$1,500

Cost of layoffS400

What is the cost of this demand plan?

Options:

A.

$1,605,000

B.

$180,800

C.

$1,606,300

D.

$1,616,300

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Questions 41

Which of the following circumstances MOST warrants expediting?

Options:

A.

A new order placement for standard inventory parts

B.

A purchase order for a part under evaluation for an engineering change

C.

A purchase order that is currently past due from the supplier

D.

A purchase order for parts with a history of defects

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Questions 42

A supply manager is part of a ramp-up team for a new product line. The supply manager's role will include finding and evaluating new sources and obtaining commitments to support the volume projected by marketing. In recent campaigns, sales forecasts have been considerably higher than actual demand, and the supply manager wants to minimize the risk of such a situation happening again. Which of the following arguments made by the supply manager will MOST likely influence the team to re-examine product launch expectations?

Options:

A.

"Supplier quality problems could mean the company misses the critical time-to-market window."

B.

"The company may experience involuntary down time if suppliers cannot keep up with production needs."

C.

"Cost overruns on unfamiliar materials might cause suppliers to raise prices. ’

D.

"An overly optimistic forecast may result in costly excess inventory and obligations."

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Questions 43

A manufacturer is updating its production plans for the remainder of the year. The firm has already obtained revised needs information from its customers, as well as the finance and sales teams. Which of the following additional information would be MOST useful to the firm?

Options:

A.

Upcoming promotions from the marketing team

B.

Recent production issues from the quality team

C.

Product modifications from the design team

D.

Corporate goals from the management team

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Questions 44

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?

Options:

A.

Kepner-Tregoe cycle

B.

Demand planning

C.

Seasonal demand

D.

Product life cycle

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Questions 45

In sourcing packaging for industrial purposes, which of the following will be MOST useful for monitoring price behavior?

Options:

A.

Consumer Price Index - All Items

B.

Producer Price Index - Intermediate Materials

C.

Producer Price Index - Finished Goods

D.

Consumer Price Index - All Items Less Food & Energy

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Questions 46

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

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Questions 47

A supplier of aircraft seating receives a forecast from a major aircraft manufacturer. The forecast information is considered confidential, and thus the supplier must sign a Non-Disclosure Agreement (NDA). Given this situation, which of the following is MOST likely to be protected by the NDA?

Options:

A.

The time frame expected for completion

B.

The start date of the project

C.

The number of aircraft anticipated to be built

D.

The name of the end customer submitting the request for bid

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Questions 48

\NXY, Inc. buys high-quality fragile products from a supplier. Numerous shipments from this supplier have arrived with dents

on the packages, resulting in damaged products. Given this situation, which of the following is the FIRST course of action WXY should take?

Options:

A.

Contact the freight forwarder and inquire as to why such damages are occurring so frequently

B.

Verify that the Incoterms® 2010 rule being used ensures that the responsibility is not on the supplier's side

C.

Modify the product design in order to avoid damages during transit

D.

Send the supplier pictures of the damaged packages and request improvements

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Questions 49

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?

Options:

A.

Acceptance/rejection history

B.

Process control

C.

Corrective action plan

D.

Supplier certification

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Questions 50

A vice president (VP) of supply management receives numerous complaints regarding the length of time it takes to receive products after they have been ordered. This has resulted in the company losing business due to late customer deliveries. Which of the following is the FIRST step the VP should take in order to address this issue?

Options:

A.

Apply Winter’s Model in order to improve forecast demand for the company's products

B.

Create a value stream map to identify bottlenecks in the order-to-delivery process

C.

Meet with engineering to discuss how the product is made in order to identify areas for improvement

D.

Meet with the company’s 3PL provider to determine why they are taking so long to deliver product

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Exam Code: INTE
Exam Name: Supply Management Integration
Last Update: Dec 4, 2024
Questions: 167

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