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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	Project Management: This section covers applying project management principles to supply management activities.
Topic 3	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 4	Quality Management: This section covers understanding and applying quality management principles throughout the supply chain.
Topic 5	Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.

ISM Supply Management Integration Sample Questions (Q20-Q25):

NEW QUESTION # 20
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?

A. Supplier-managed inventory (SMI)
B. Vendor scheduling (VS)
C. Supplier relationship management (SRM)
D. Supplier quality program (SQP)

Answer: A

Explanation:
Implementing Supplier-managed inventory (SMI) allows FGH, Inc. to share production and inventory data with Supplier X, streamlining the replenishment process. This approach enables the supplier to manage inventory levels and deliveries based on real-time demand, reducing coordination efforts and improving delivery efficiency.

NEW QUESTION # 21
A company supply manager conducts a review of current freight contracts and finds that payments to the primary carrier for outbound shipments have been based on a published rate schedule, which is revised annually. The supply manager believes the shipping costs may be higher than necessary. In order to reduce outbound transportation costs, which of the following should the supply manager do FIRST'

A. Perform a carrier performance review
B. Solicit proposals from several other reputable carriers
C. Explore savings opportunities with the primary carrier
D. Initiate a carrier cost audit

Answer: C

Explanation:
The first step in reducing outbound transportation costs is to explore potential savings with the current carrier.
This approach involves negotiating rates and service terms, leveraging existing relationships, and possibly uncovering cost-saving opportunities without the need for complex audits or new vendor searches. Engaging with the primary carrier directly can be an efficient starting point.

NEW QUESTION # 22
An ERP purchasing module indicates a gross requirement of 100 units for part number A123. There is an open purchase order for 55 units. The item master for this supplier shows an order lot size of 30 units each. In this situation, how many units of this part will the exception report indicate should be ordered7

A. 0
B. 1
C. 2
D. 3

Answer: B

Explanation:
With a gross requirement of 100 units and an open order for 55 units, 45 additional units are needed. Given the lot size of 30 units, the exception report would indicate ordering 45 units to meet the requirements.

NEW QUESTION # 23
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?

A. Consignment
B. Forward
C. Speculative
D. Spot

Answer: C

Explanation:
Speculative buying occurs when an organization purchases more inventory than necessary based on the forecasted increase in prices or potential shortages. This strategy aims to capitalize on market conditions, potentially resulting in financial gains. Reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management.

NEW QUESTION # 24
A firm has created the following process flow diagrams depicting two possible strategies for the production of a new product line. The triangles represent inventory, and the rectangles represent processing. Each of the two options start with the same raw materials, and both create the product through two stages of processing.

Which of the following statements is correct?

A. Option A's product will be equally as expensive to make as Option B's.
B. Option A's product is customizable for customers.
C. Option B's product is an example of delayed differentiation.
D. Option B's customers are likely to wait longer before receiving the product.

Answer: C

Explanation:
Option B's process flow indicates that the final inventory (triangle) occurs after the second processing stage, suggesting a strategy of delayed differentiation. This approach allows customization or final product adjustments to occur closer to the point of customer delivery, reducing lead time for specific customer requirements and minimizing excess inventory of finished goods. Reference: Lean manufacturing and supply chain strategies.

NEW QUESTION # 25
......

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