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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 large manufacturing organization has a policy of awarding contracts to a single source based on bids for requirements over a specified time period. Some of the parts sourced are readily available from many suppliers, and the organization's supply management team recommends choosing a few of these parts for a trial project to determine the effectiveness of multiple sourcing. The MOST likely advantage of the multiple sourcing arrangement will be

Options:

A.

improved production scheduling accuracy

B.

the ability to test new suppliers with little risk

C.

enhanced standardization programs

D.

the improvement of product quality

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Question 2

Motivated by public relations considerations, a company decides to insource the manufacture of a major product. This decision was MOST likely made to bring about

Options:

A.

improved community ties

B.

increased profit margins

C.

shorter lead times

D.

decreased product risk

Question 3

A supply manager Is evaluating bids for a new delivery van. Supplier J, which has provided similar equipment in the past, quotes a price of $50,000. Supplier K quotes a price of $52,500, but Includes an offer to buy back the van at the end of five years for $3,000. Both suppliers' bids meet specifications and delivery requirements. At a 10% opportunity cost of capital, and with the 5-year present value of $1 at $.62, which supplier should the supply manager choose, and why?

Options:

A.

Supplier K, as the firm will save $500

B.

Supplier J, as it provides the best value

C.

Supplier J, based on prior satisfactory performance

D.

Supplier K, to save money over the van's life cycle