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ISM INTE Exam Syllabus Topics:

Topic
Details

Topic 1

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

Topic 2

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

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

Sales and Operations Planning (SOP): This section covers sales and Operations Planning, Demand Planning, and Forecasting.

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ISM Supply Management Integration Sample Questions (Q22-Q27):

NEW QUESTION # 22
In sourcing packaging for industrial purposes, which of the following will be MOST useful for monitoring price behavior?

A. Producer Price Index - Intermediate Materials
B. Consumer Price Index - All Items Less Food & Energy
C. Producer Price Index - Finished Goods
D. Consumer Price Index - All Items

Answer: A

Explanation:
The Producer Price Index for Intermediate Materials is most relevant for monitoring price behavior in industrial packaging, reflecting changes in production costs that affect supply chain economics. References:
Price index reports are essential tools for tracking market trends and making informed procurement decisions in industrial sectors.

NEW QUESTION # 23
Which of the following categories is regarded as low risk and low value?

A. Bottleneck
B. Leverage
C. Routine
D. Strategic

Answer: C

Explanation:
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.

NEW QUESTION # 24
The supply manager for a semiconductor company receives an emergency phone call from the firm's factory manager, who states that the manufacturing equipment is down and that a replacement part is needed as soon as possible. The supply manager checks the stock for this part but finds nothing. In this situation, the supply manager should do which of the following?

A. Ask the factory manager to perform an equipment failure analysis in order to understand the root cause of the equipment failure
B. Perform a cost analysis to examine if it is better to expedite the part or wait for the part's scheduled arrival date
C. Contact the equipment supplier and ask it to coordinate an expedited delivery of the part as soon as possible
D. Verify with the warehouse manager if there is an extra spare part in stock that was not correctly registered in the stock database system

Answer: C

Explanation:
In urgent situations, expediting replacement parts minimizes downtime and maintains production flow. Direct communication with the supplier is critical for fast resolution. Reference: Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management.

NEW QUESTION # 25
In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement. Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?

A. Utilize supplier performance metrics to ensure optimum rates
B. Conduct carrier cost auditing to reduce net costs of transportation
C. Analyze mode, classification and other factors that affect total cost
D. Opt for variable freight rates

Answer: C

Explanation:
Analyzing transportation modes, classification, and cost-influencing factors allows the supply manager to identify opportunities for cost savings beyond published rates. This approach leverages supply management skills to optimize logistics strategies, demonstrating value in cost reduction. References: Logistics management theories advocate for comprehensive cost analysis to enhance decision-making and operational efficiency.

NEW QUESTION # 26
A supplier with a previously good performance record has recently been shipping parts with a number of flaws, making them unusable for production. The firm's supply manager would like to resolve these problems before taking more drastic measures. Which of the following actions should the supply manager take FIRST'

A. Re-work the parts in-house and bill the supplier for any costs incurred
B. Ask engineering to review tolerances on non-critical specifications and relax them if possible
C. Test the parts at an independent laboratory and notify the supplier of the results
D. Explore possible root causes, including changes in the supplier's production processes

Answer: D

Explanation:
When a previously reliable supplier starts delivering flawed parts, the first step should be to ex-plore possible root causes. This approach helps in identifying any recent changes in the supplier's production processes, materials, or workforce that might be contributing to the quality issues. By understanding the root cause, the supply manager can work with the supplier to implement correc-tive actions, ensuring long-term solutions rather than temporary fixes. This collaborative approach also maintains a good relationship with the supplier and encourages continuous improvement. References:
*Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
*Burt, D. N., Petcavag

NEW QUESTION # 27
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Will Walker Will Walker

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