ISM CORE Exam With Confidence Using Practice Dumps

Calculate Total Cost per Supplier: This includes the unit price and shipping costs.

Supplier A: Unit cost is $0.69. Shipping cost is $2000 per 10,000 units.

Total cost per unit: $0.69 + ($2000/10,000) = $0.69 + $0.20 = $0.71 per unit.

Supplier B: Unit cost is $0.71. Shipping cost is $1500 per 10,000 units.

Total cost per unit: $0.71 + ($1500/10,000) = $0.71 + $0.15 = $0.715 per unit.

Compare Landed Prices: The total cost per unit for Supplier A is $0.71, and for Supplier B, it is $0.715.

Decision: Supplier A offers the lower landed price at $0.71 per unit compared to Supplier B’s $0.715 per unit.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.

Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.

The first step in preparing a department's budget is to understand and align with the organization's overall goals. This ensures that the budget supports the strategic objectives and priorities of the organization.

Controlling expenditures during the budgetary year: This is part of budget execution and management, not the initial step.

Reviewing the organization's goals: The first step is to ensure that the budget aligns with and supports the organization’s strategic goals and objectives. This alignment ensures that resources are allocated appropriately to achieve these goals.

Defining the needed resources: This comes after understanding the organization's goals, as it helps to determine what resources are necessary to meet those goals.

Presenting the budget for review: This is one of the final steps in the budget preparation process.

Therefore, the first step in the budget preparation process is reviewing the organization's goals.

References:

Financial management best practices.

Budget preparation guidelines from the Institute of Management Accountants (IMA).

Rejecting Supplier X's offer (Option C) is the best course of action. Once a contract has been awarded through a formal RFP process, reopening or renegotiating after the award undermines the integrity of the procurement process and can lead to legal and ethical issues. Escalating to executive management (Option A) or withdrawing the award (Option D) could disrupt established procurement protocols and fairness. Reopening the RFP (Option B) would compromise the transparency and fairness of the initial process.

References:

Ethical Guidelines in Supply Management

RFP Process Best Practices