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ISM INTE Exam Syllabus Topics:

Topic	Details
Topic 1	Sales and Operations Planning (SOP): This section covers sales and Operations Planning, Demand Planning, and Forecasting.
Topic 2	Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.
Topic 3	Project Management: This section covers applying project management principles to supply management activities.
Topic 4	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 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 (Q92-Q97):

NEW QUESTION # 92
A manufacturer has historically ordered fasteners utilizing monthly fixed order quantities. The firm wishes to explore the feasibility of using economic order quantity (EOQ), and determines that the EOQ is less than the supplier's quoted price break. Which of the following is the BEST course of action for the firm to take?

A. Place orders using the economic order quantity
B. Implement a Vendor Managed Inventory program with the supplier to transfer carrying costs
C. Negotiate a new contract with the supplier to modify price breaks
D. Compare the price break to the carrying cost of buying at the economic order quantity

Answer: D

Explanation:
Comparing the price break to the carrying cost of buying at the economic order quantity is essential. This analysis will help the firm determine the most cost-effective purchasing strategy by weighing the benefits of the price break against the costs associated with holding additional inventory. Reference: Inventory management and cost analysis.

NEW QUESTION # 93
Which of the following BEST explains why forecast accuracy is important in contracts with suppliers?

A. It improves continuity of supply while allowing the supplier to reduce costs over time.
B. . It allows the buying firm to gauge supplier performance degradation over the life of the contract.
C. It locks in the lowest possible cost to the organization over the life of the contract.
D. It allows the organization more freedom in procuring supply in the market.

Answer: A

Explanation:
Accurate forecasts enable suppliers to optimize production and inventory levels, reducing costs and enhancing supply reliability. This mutual benefit strengthens supplier relationships. Reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management.

NEW QUESTION # 94
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?

A. $1,606,300
B. $1,605,000
C. $1,616,300
D. $180,800

Answer: A

Explanation:
The total cost is calculated by summing the costs of regular and overtime production, hiring, layoffs, and inventory. Calculations consider each month's figures and associated costs, providing a comprehensive total that aligns with supply chain cost management principles.

NEW QUESTION # 95
MNO, Inc. operates within a volatile industry in which unforeseen demand and events often result in unreliable forecasts. Which of the following is the BEST way for MNO to generate better information about demand and improve forecast accuracy?

A. Increase inventory quantities
B. Improve fill rate
C. Increase collaboration with downstream customers
D. Focus on the organization's key competencies

Answer: C

Explanation:
Increasing collaboration with downstream customers helps MNO, Inc. obtain better insights into demand patterns and improve forecast accuracy. Close partnerships facilitate information sharing and joint planning, crucial in volatile industries. References: Supply chain collaboration is widely recognized for enhancing forecast reliability and responsiveness.

NEW QUESTION # 96
Based on the global reach and complexity of supply chains, resiliency planning and risk assessment are necessary because of which of the following'

A. Supplier bankruptcies in competitive markets
B. Uncollected receivables
C. Lack of training within the organization
D. Natural and man-made disasters

Answer: D

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 # 97
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