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INTE Exam Results

Page: 10 / 13
Total 167 questions

Supply Management Integration Questions and Answers

Question 37

DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows:

MonthJulAugSepOctNovDecJanFeb

Unit Sales1001502006001,4002,2004,00010,000

Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.

There are only three suppliers capable of providing the specialized component critical to this product. The production capacities of these suppliers are as follows:

•Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business

•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business

•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business

Two of these companies—Supplier X and Supplier Y—are minority businesses.

Given this situation, DEF should contract with

Options:

A.

Supplier Z only, as it can best fulfill the forecasted demand

B.

all three companies in a tiered system, with up to 40% from Supplier X and Y's total monthly business, and the remainder going to Supplier Z

C.

Suppliers X and Y, and work with them to increase their production capability

D.

all three companies in a tiered system, with up to 5,000 units from Supplier X, 20,000 units from Supplier Y, and the remainder from Supplier Z

Question 38

An organization purchases material from several countries. These materials are assembled into products and sold in several other countries. This firm's product specifications will MOST likely reference

Options:

A.

International standards

B.

Incoterms® 2010 rules

C.

North American Free Trade Act

D.

exchange rates

Question 39

XYZ, Inc. has experienced a significant increase in the number of expedited orders with a key supplier over the last few months. In this situation, XYZ should

Options:

A.

raise the reorder point level of the products purchased from the supplier, so that XYZ will not be affected by any stock shortages

B.

request that the supplier offer a discount on its products, as the expedited requests are a financial burden

C.

contact a freight forwarder and sign a priority shipping agreement, so that XYZ can secure the expedited services

D.

determine the reasons for the ongoing expedited orders, identify the root cause, and take corrective action

Question 40

Which of the following refers to the exporting of a product by a country or company at a price that is lower in the foreign importing market than the price charged in the exporter's domestic market?

Options:

A.

Short selling

B.

Dumping

C.

Hedging

D.

Recovery

Page: 10 / 13
Total 167 questions