Verified INTE Exam Dumps PDF [2025] Access using TopExamCollection [Q58-Q81]

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Verified INTE Exam Dumps PDF [2025] Access using TopExamCollection

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ISM INTE Exam Syllabus Topics:

Topic	Details
Topic 1	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 2	Sales and Operations Planning (SOP): This section covers sales and Operations Planning, Demand Planning, and Forecasting.
Topic 3	Quality Management: This section covers understanding and applying quality management principles throughout the supply chain.
Topic 4	Project Management: This section covers applying project management principles to supply management activities.
Topic 5	Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.

NO.58 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?

Kepner-Tregoe cycle

Demand planning

Seasonal demand

Product life cycle

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.

NO.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?

Determine the optimal number and Ideal locations of warehouses in order to serve the customer base most effectively

Conduct network redesign and optimization to support the business, increase productivity, and lower costs

Close the three locations that are performing poorly, and move all the existing stock to the remaining two warehouses

Continue operating all the warehouses, but relocate the most important stock to the better-performing locations

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.

NO.60 A manufacturer of gardening products has many international suppliers. Because of extended lead-times and logistical concerns, it is critical that the company provides accurate seasonal demand planning data to its suppliers. Given this situation, which of the following types of feedback from the supplier would be MOST critical to the manufacturer?

Price increases on key components

Anticipated production schedules and capacity planning

Notification of any constraints to meeting demands

Planned delivery schedules

For a manufacturer reliant on accurate seasonal demand planning, awareness of potential constraints from suppliers is crucial. This feedback allows the manufacturer to adjust plans and mitigate risks, ensuring a smooth supply chain operation. Effective communication and proactive problem-solving are essential in managing supply chain uncertainties.

NO.61 Which of the following is a key requirement of xRP7

Data integrity

Supplier consolidation

Smoothing algorithms

Should-cost data

Data integrity is essential for any extended Resource Planning (xRP) system. Accurate and reliable data ensures effective planning, decision-making, and resource allocation across the supply chain. Maintaining data integrity minimizes errors and supports overall operational efficiency.

NO.62 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?

Perform an industry benchmark analysis to better gauge performance against that of similar retailers within the marketplace

Invest in promotional offerings in order to boost sales

Implement revisions to its sales forecasting methodology with the goal of improving inventory turns

Conduct an economic and market analysis to better understand trends occurring within the industry

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.

NO.63 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?

Place orders using the economic order quantity

Negotiate a new contract with the supplier to modify price breaks

Implement a Vendor Managed Inventory program with the supplier to transfer carrying costs

Compare the price break to the carrying cost of buying at the economic order quantity

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.

NO.64 DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows:
MonthJulAugSepOctNovDecJanFeb
Unit Sales1001502006001,4002,2004,00010,000
Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.
There are only three suppliers capable of providing the specialized component critical to this product. The production capacities of these suppliers are as follows:
*Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business
*Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business
*Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business Two of these companies-Supplier X and Supplier Y-are minority businesses.
Given this situation, DEF should contract with

Supplier Z only, as it can best fulfill the forecasted demand

all three companies in a tiered system, with up to 40% from Supplier X and Y’s total monthly business, and the remainder going to Supplier Z

Suppliers X and Y, and work with them to increase their production capability

all three companies in a tiered system, with up to 5,000 units from Supplier X, 20,000 units from Supplier Y, and the remainder from Supplier Z

Contracting with all three suppliers in a tiered system allows DEF, Inc. to diversify its supply chain, supporting both minority businesses and ensuring capacity to meet demand. This strategy balances cost, supplier diversity, and risk management, aligning with best practices in supply chain management.

NO.65 A manufacturing firm prepares the following materials requirement plan (MRP):
Master Production Schedule
Week123456
Item A101015152020
Relevant Information
ItemItem’s ParentItem’s Lead TimeItem’s Lot SizeItem’s Current Inventory ANone1 weekLFL50 BA2 weeks5010 CB2 weeks5010 Using MRP methodology, how much of Item B should be ordered, and when should it be ordered7

50 items immediately and 50 items in week 3

20 items in week 4 and 20 items in week 5

10 items in week 2 and 20 items in week 3

50 items in week 2

According to MRP, with a lead time of 2 weeks for Item B and current inventory insufficient to meet future demands, ordering 50 items in week 2 ensures availability for production needs in weeks 4 and beyond, following the lot-for-lot (LFL) order policy.

NO.66 DFG Inc. has been experiencing declining sales in its consumer division. After analyzing its sales data, the company determines that racial and ethnic minorities are underrepresented as consumers of its products. DFG decides to focus on increasing its appeal to these groups. DFG’s products are of excellent quality and value, and the firm believes that its sales are weak with this segment because of a lack of knowledge about DFG and its products.
Which of the following is the FIRST step that DFG should undertake?

Publicize DFG’s supplier diversity program, which has grown in both the number of participating suppliers and the amount of materials purchased from diverse suppliers

Hire a marketing and advertising firm that specializes in the minority consumer segment to build and monitor a program aimed at racial and ethnic minority customers

Have DFG’s public relations group promote the firm’s racially and ethnically diverse executive leadership in large media outlets

While advertising the quality and value of their products, offer coupons via direct marketing that target minority communities

Partnering with a specialized marketing firm can effectively target underrepresented consumer segments, enhancing brand visibility and appeal. This strategic move ensures culturally relevant messaging and outreach, potentially increasing market penetration.

NO.67 The sourcing manager for a regional retail bakery chain reviews order quantities and stocking for perishable condiments on a quarterly basis. Which of the following factors should be the MOST critical consideration in this analysis?

Setting reasonable delivery performance metrics for suppliers

Understanding the tradeoff between freight costs and inventory levels

Balancing customer service expectations with risk of stockouts

Maintaining profitability for low margin items

For perishable goods, the balance between customer service and stockouts is crucial. Excess inventory leads to waste, while stockouts can harm customer satisfaction. The sourcing manager must carefully analyze demand patterns, inventory turnover, and customer expectations to optimize stocking levels. This consideration is supported by logistics and inventory management best practices, focusing on perishables and consumer satisfaction metrics.

NO.68 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?

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

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

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

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

Working with engineering to assess the impact of each defect type on customers helps prioritize corrective actions effectively. Addressing the defect with the highest customer impact first ensures that resources are focused on the most critical issues, improving product quality and customer satisfaction.

NO.69 A firm sells an average of 2,000 units of snacks from its existing stock while it waits for orders to be delivered. Demand during lead time varies in accordance with a normal distribution. The firm’s supply manager prepares a presentation to explain the concept of customer service and safety stock levels using the following figure:

What does the shaded area D (in red) represent?

Average demand during lead-time

Service level

Stock-out risk

Re-order point

The shaded area D represents the probability of running out of stock during lead time, indicating the level of risk if safety stock is insufficient. Proper safety stock levels are crucial to minimize stock-outs and ensure service reliability. Reference: Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.

NO.70 A product has the following characteristics:
COGS$1,000,000
Starting Inventory20,000
Ending Inventory10,000
What is the inventory turnover of this item’

The product will turn 100 times.

The product will turn 33.3 times.

The product will tum 50 times.

The product will tum 66.7 times.

Inventory turnover is calculated as COGS divided by the average inventory. Using the provided values: COGS ($1,000,000) and average inventory ((20,000 + 10,000) / 2), the turnover ratio is 50. This metric is crucial for assessing inventory management efficiency, indicating how often inventory is sold and replaced over a period.

NO.71 The packaging optimization process begins by understanding which of the following?

Product characteristics

Packaging density

Transportation modes

Packaging budget

Understanding product characteristics is fundamental in packaging optimization, as these details influence packaging design, materials, and methods. This knowledge ensures that the packaging protects the product while optimizing space and cost. References in logistics emphasize the importance of aligning packaging with product requirements to improve efficiency and sustainability.

NO.72 Which of the following will likely offer the BEST incentive for a supplier to make continuous improvements in its supply chain performance?

Establishing performance improvement time periods as part of the contract

Requiring performance improvements as a matter of course

Linking performance improvements to the possibility of additional business

Unking performance improvements to shared benefits

Linking performance improvements to the possibility of additional business provides a strong incentive for suppliers to continuously improve. This arrangement motivates suppliers to enhance their supply chain performance to secure more contracts or business opportunities.

NO.73 Which of the following categories is regarded as low risk and low value?

Strategic

Leverage

Routine

Bottleneck

Routine categories are regarded as low risk and low value. These items are typically standardized and widely available, requiring minimal management effort. They often include office supplies or basic maintenance items. This classification allows firms to focus resources on more critical areas. Reference: Kraljic’s purchasing portfolio model.

NO.74 A cell phone retailer experiences excess inventory of a particular model due to errors in demand forecasting.
In addition, remorse returns of this model are greater than anticipated. Which of the following is the BEST course of action the company can take to recover value from these assets?

Execute an online auction in the secondary market to resell the new devices and the remorse returns

Deploy a permanent e-commerce platform for the sale of the assets, as this will be useful for any future instances of excess and remorse return

Contract with a third-party specialist for the destruction of the returned assets and the resale of the raw materials that result

Use an e-commerce provider for the sale of the device using a revenue share and risk compliance model

Conducting an online auction is an effective strategy for rapidly liquidating excess inventory and remorse returns. This approach maximizes recovery value by reaching a broad audience of potential buyers in the secondary market, addressing inventory concerns promptly and efficiently.

NO.75 Material accumulated for a well-defined future need is called

buffer stock

continuous inventory

anticipation inventory

safety stock

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.

NO.76 Which of the following refers to an operations management philosophy whose objective is to reduce waste and cycle time?

Total Quality Management

Process Mapping

ABC Analysis

Just-In-Time

Just-In-Time (JIT) is an operations management philosophy aimed at reducing waste and cycle time. It focuses on producing only what is needed, when it is needed, and in the amount needed, thereby minimizing inventory levels and enhancing efficiency. This approach leads to reduced costs and improved product quality.
Reference: Lean manufacturing principles and JIT methodologies.

NO.77 A distributor receives orders from a customer for the following parts:
PO1801: 6 pcs of Item #XYZ-06
3 pcs of Item #XYZ-09
PO1802: 3 pcs of Item #XYZ-09
Item #XYZ-06 is currently out of stock. The shipping manager contacts the customer, who gives authorization to ship the available parts and back order the rest. What is the line count fill rate for the customer?

50%

25%

66%

33%

Anticipation inventory is material accumulated for a well-defined future need, such as seasonal demand or planned promotions. It helps companies prepare for expected spikes in demand. References: Inventory management literature emphasizes the role of anticipation inventory in aligning stock levels with future market requirements.

NO.78 XYZ, Inc. has experienced a significant increase in the number of expedited orders with a key supplier over the last few months. In this situation, XYZ should

raise the reorder point level of the products purchased from the supplier, so that XYZ will not be affected by any stock shortages

request that the supplier offer a discount on its products, as the expedited requests are a financial burden

contact a freight forwarder and sign a priority shipping agreement, so that XYZ can secure the expedited services

determine the reasons for the ongoing expedited orders, identify the root cause, and take corrective action

When experiencing a significant increase in expedited orders, the best course of action for XYZ, Inc. is to determine the reasons for these orders, identify the root cause, and take corrective action. This approach helps in addressing the underlying issues, whether they are related to demand fore-casting inaccuracies, production delays, or supply chain inefficiencies. By understanding and cor-recting the root cause, XYZ can prevent future expedited orders, reduce costs, and improve overall supply chain performance. References:
*Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.
*Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.

NO.79 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?

Equity

Book

Market

Historic

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.

NO.80 A manufacturer has facilities around the world and purchases steel from various global markets. The firm uses decentralized purchasing, with a procurement team in each of its various markets. Management would like to see a corporate approach to steel procurement. Which of the following should the firm’s supply manager recommend?

A lead business unit for steel, to interface and handle procurement and strategy for each market

A sourcing committee with a representative from each market, to facilitate global steel strategy

Regional procurement groups that focus on steel negotiations and strategies for each market

A corporate steering committee to advise on strategy and act as a liaison with major suppliers

A sourcing committee with representatives from each market is recommended to facilitate a corporate approach to global steel procurement. This structure promotes coordination and unified strategies across markets, optimizing procurement processes and leveraging corporate buying power.

NO.81 XYZ, Inc. is a manufacturer and distributor of fishing gear. XYZ relies on poorly-executed forecasts from its retail partners, which leads to exaggerated demand. This in turn leads to XYZ experiencing increased inventory, material handling concerns, and difficulties managing its accounts payable. Which of the following BEST describes what is occurring in this situation?

Bullwhip effect

Speculative buying

Adaptive smoothing

Backflush

The situation describes the bullwhip effect, where poor forecasting by retail partners leads to exaggerated demand signals, causing inefficiencies like excess inventory and handling challenges. This effect is common in supply chains with inadequate communication and coordination. References: Supply chain management literature extensively discusses the bullwhip effect as a critical issue in demand forecasting and inventory management.

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