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ISM Supply Management Integration Sample Questions (Q145-Q150):

NEW QUESTION # 145
Which of the following requires investment recovery action'

A. Finished goods
B. Raw materials
C. Work-in-process
D. Slow-moving materials

Answer: D

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 # 146
A disaster response manager plans to deliver pallets of bottled water to volunteers at a disaster site. The water comes from a nearby bottling company at a preferential cost of $50 per pallet. The number of pallets of bottled water needed is impossible to know in advance due to numerous variables, although experience indicates that the likelihood of consumption is equal: a 25% chance each for 1, 2, 3 or 4 pallets of bottled water. If a full pallet is returned, a restocking fee of 520 is charged. If not enough water is brought in, the cost of purchasing a pallet of water on location is expected to be $200.
How many pallets should the manager deliver?

A. 1 pallet
B. 2 pallets
C. 4 pallets
D. 3 pallets

Answer: B

Explanation:
Delivering 2 pallets optimizes cost-effectiveness based on the probabilities of usage and potential costs of over- or under-supply. This number balances the likelihood of demand with the costs associated with restocking and emergency purchases, minimizing overall expenditure in uncertain conditions.

NEW QUESTION # 147
A well-established retailer of consumer goods has earned a reputation for providing high quality merchandise at competitive prices. In recent years, however, the retailer has experienced a steady decline in sales within its stores. Which of the following is the BEST course of action for the retailer to take?

A. Implement revisions to its sales forecasting methodology with the goal of improving inventory turns
B. Conduct an economic and market analysis to better understand trends occurring within the industry
C. Invest in promotional offerings in order to boost sales
D. Perform an industry benchmark analysis to better gauge performance against that of similar retailers within the marketplace

Answer: B

Explanation:
Conducting an economic and market analysis allows the retailer to identify underlying issues affecting sales.
This approach provides insights into consumer behavior, competitive positioning, and industry trends, enabling the company to adapt strategically. It addresses root causes rather than symptoms, making it a more sustainable solution. References include case studies and industry reports on retail market analysis and strategic adjustment practices.

NEW QUESTION # 148
A graph of a firm's inventory replenishment system reveals the following:

Which of the following is TRUE'

A. There is a fixed order quantity of 500 units.
B. There is near instantaneous replenishment.
C. The order cycle is two and a half days.
D. The average inventory is 1,850 units.

Answer: B

Explanation:
The graph shows inventory levels being replenished back to the maximum level immediately after reaching zero, indicating near-instantaneous replenishment. This is characteristic of a system where the lead time for orders is very short or negligible, allowing the firm to maintain optimal inventory levels without significant delay. This approach minimizes stockouts and ensures a con-tinuous supply of inventory. References:
*Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.
*Silver, E. A., Pyke, D. F., & Thomas, D. J. (2016). Inventory and Production Management in Supply Chains.
CRC Press.

NEW QUESTION # 149
A company finds that delays and cost overruns are creating problems in its service contracts. To improve this situation, which of the following should the firm do FIRST?

A. Establish progress milestones and monitoring for existing contracts
B. Convert cost reimbursable contracts into fixed prices
C. Renegotiate pricing with current service suppliers
D. Revise the company's standard contract template for all of its services

Answer: A

Explanation:
Establishing progress milestones and monitoring allows the company to track performance and address issues promptly, reducing delays and cost overruns. It provides clear checkpoints and accountability in service contracts. References: Effective contract management involves setting measurable milestones to ensure timely and cost-effective project completion.

NEW QUESTION # 150
......

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Pass Guaranteed 2025 ISM INTE: Supply Management Integration Perfect New Real Test

Exam INTE Answers | Question INTE Explanations

ISM Supply Management Integration Sample Questions (Q145-Q150):

INTE perp training & INTE testking vce & INTE valid torrent

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