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ISM INTE Exam Syllabus Topics:

Topic
Details

Topic 1

Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.

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

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

Project Management: This section covers applying project management principles to supply management activities.

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ISM Supply Management Integration Sample Questions (Q56-Q61):

NEW QUESTION # 56
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?

A. The number of aircraft anticipated to be built
B. The start date of the project
C. The time frame expected for completion
D. The name of the end customer submitting the request for bid

Answer: A

Explanation:
The number of aircraft anticipated to be built is most likely to be protected by the NDA. This information is sensitive as it relates directly to production forecasts and potential market demand, which can impact competitive positioning and business strategy.

NEW QUESTION # 57
A company's average inventory value has remained relatively constant, while its cost of goods sold has increased. Which of the following will also likely show an increase for this firm?

A. Stock level
B. Variance
C. Cycle time
D. Turnover

Answer: D

Explanation:
An increase in cost of goods sold while maintaining a constant average inventory value results in higher inventory turnover. This indicates improved efficiency in managing inventory relative to sales. References:
Inventory management metrics highlight turnover as a critical measure of how effectively inventory is being utilized.

NEW QUESTION # 58
A chemical supply company creates a new liquid chemical product which must be shipped by tanker truck.
The new chemical is expected to constitute 10% of the firm's sales over the next five years. The company's other sales are all solid powder chemicals. Given these circumstances, which of the following will be the MOST cost effective method for the company to ship the new product'

A. Market only to customers who will pay for their own transportation
B. Engage a 3PL liquid transport company provider
C. Purchase a fleet of tanker trucks at a discounted price
D. Purchase a single tanker truck initially, buying more trucks as sales increase

Answer: B

Explanation:
Utilizing a third-party logistics (3PL) provider specializing in liquid transport offers cost-effective shipping solutions without the need for significant capital investment in specialized equipment. This approach allows the company to focus on core activities while leveraging the expertise and infrastructure of the 3PL provider.

NEW QUESTION # 59
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?

A. "The company may experience involuntary down time if suppliers cannot keep up with production needs."
B. "An overly optimistic forecast may result in costly excess inventory and obligations."
C. "Cost overruns on unfamiliar materials might cause suppliers to raise prices. '
D. "Supplier quality problems could mean the company misses the critical time-to-market window."

Answer: B

Explanation:
Highlighting the risks of excess inventory and financial obligations due to optimistic forecasts is a compelling argument. It addresses financial impacts and supply chain efficiency, which are critical for decision-making in product launches. By presenting potential negative outcomes, the supply manager can influence the team to adopt more realistic projections. This approach is backed by supply chain risk management literature that emphasizes forecasting accuracy and inventory control.

NEW QUESTION # 60
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?

A. Wait until the storm's path can be predicted more accurately
B. Arrange for immediate air freight of the equipment
C. Evaluate options for a multimodal shipment
D. Use ocean freight after the storm subsides

Answer: D

Explanation:
Marine transportation is the best option for promoting international trade and transporting large quantities of products at a low cost. It allows for economies of scale, making it the most cost-effective mode for bulk shipments. References: Global trade studies frequently cite maritime shipping as a key enabler of international commerce due to its capacity and cost benefits.

NEW QUESTION # 61
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