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New Release INTE CPSM Questions

Page: 13 / 13
Total 167 questions

Supply Management Integration Questions and Answers

Question 49

A manufacturer receives notice from one of its largest customers stating that, from this point on, it will only accept environmentally friendly boxes for packaging. The manufacturer checks the remaining packaging in its inventory and finds that it still has over six months' worth of boxes that are not made of environmentally-friendly materials. These boxes are custom-designed and cannot be returned to the packaging material supplier. In this situation, the manufacturer would be BEST served by doing which of the following?

Options:

A.

Disposing of the existing boxes and switching to environmentally-friendly materials

B.

Explaining the situation to the customer and offering the products in the existing boxes at a discounted price

C.

Negotiating a grace period with the customer to allow a gradual switch from the existing design to the new one

D.

Using the leftover boxes for internal purposes within the organization

Question 50

Which of the following refers to the practice of buying a commodity on the open market for immediate delivery?

Options:

A.

Hedging

B.

C.

D.

Answer:

E.

Forward buying

F.

Spot buying

G.

Speculative buying

Page: 13 / 13
Total 167 questions