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CORE Exam Dumps : Supply Management Core Exam

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Supply Management Core Exam Questions and Answers

Question 1

A company buys 200 metric tons of ethylene per month. The firm has a one-year agreement with Supplier X to buy the ethylene at $1000 per metric ton. After 3 months, the market price drops to $900 per metric ton, and the firm renegotiates the price to $890 per metric ton for the remaining contract term.

What savings should be reported?

Options:

A.

$264,000 cost reduction and $240,000 cost avoidance

B.

$18,000 cost reduction and $180,000 cost avoidance

C.

$24,000 cost reduction and $240,000 cost avoidance

D.

$198,000 cost reduction and $198,000 cost avoidance

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Question 2

A supply manager Is conducting the following activities:

•Mapping between category codes and category maps

•Normalizing supplier information

•Performing supplier mapping

•Refining mapping with financial systems data

Which of the following is the supply manager engaged in?

Options:

A.

Risk analysis

B.

Spend analysis

C.

Market analysis

D.

Cost/price analysis

Question 3

A supply management department is asked to obtain lower prices from suppliers. Through its efforts, the department manages to achieve a 5% reduction in indirect spend categories. However, some stakeholders request more items, keeping total expenditures about the same despite lower per-item costs.

Which of the following will be the BEST long-term approach for supply management to improve upon this situation?

Options:

A.

Refrain from processing orders for additional items unless there is a compelling justification

B.

Report the problem to top management, citing the departments with the poorest records

C.

Work with leadership to implement a more effective demand management program

D.

Accept additional orders only if the requesting department has at least a 5% overall reduction in spend