INTE Actual Exams - Trustworthy INTE Pdf
INTE Actual Exams - Trustworthy INTE Pdf
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ISM INTE Exam Syllabus Topics:
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ISM Supply Management Integration Sample Questions (Q53-Q58):
NEW QUESTION # 53
A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:
MonthJanFebMarAprMayJunJulAug
Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000
Production20,00020,00020,00020,00020,00020,00020,00020,000
The supply management department learns that one of its retailers is planning a promotional event on August
1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of January, and maximum inventory holding is 15,000 units.
How many units per month should production increase in order to meet the requirements of its retailer and minimize overall inventory levels?
- A. 14,000
- B. 2,715
- C. 2,500
- D. 2,000
Answer: D
Explanation:
To meet the additional requirement of 19,000 units for the promotional event, production should increase by
2,000 units per month from January to August. This increase ensures that the necessary inventory is built up gradually, minimizing excess stock and adhering to maximum inventory limits. Reference: Level production strategy and inventory management.
NEW QUESTION # 54
A manufacturer is working to standardize high-volume, low-cost hardware components used in its assembly process. The manufacturer wants to transfer some of the risks associated with inventory carrying costs, warehousing costs, and re-stocking costs to the supplier. Which of the following will be MOST useful in accomplishing this goal?
- A. Reorder-point system
- B. Safety stock
- C. Vendor-managed inventory
- D. Kanban
Answer: C
Explanation:
Vendor-managed inventory (VMI) is an effective strategy for transferring risks related to inventory carrying costs, warehousing costs, and re-stocking costs to the supplier. In VMI, the supplier manages inventory levels, ensuring that stock is replenished as needed, which reduces the manufacturer's burden of inventory management and associated risks.
NEW QUESTION # 55
A specialized sewing shop quilts fabrics for use in upholstered furniture. Various patterns are produced on different machines, each of which has its own set-up routine. At times, one type of machine is idle while others are backed up. The sewing floor supervisor finds new software which makes the machines' patterns interchangeable. Which of the following is the MOST likely result of upgrading to the new software?
- A. Reduced inventory and increased productivity
- B. Decreased cycle time and increased set up costs
- C. Increased equipment costs and reduced inventory
- D. Increased productivity and decreased cycle time
Answer: D
Explanation:
Implementing software that allows machine pattern interchangeability enhances flexibility and efficiency, reducing idle time and bottlenecks. This leads to increased productivity and shorter cycle times. Reference:
Stevenson, W. J. (2020). Operations Management.
NEW QUESTION # 56
FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asia. The equipment is to be installed in a new auditorium that FGH is constructing.
Failure to complete the project in time for its scheduled opening will subject FGH to penalties. FGH receives notice from the supplier that the equipment is packaged and ready to ship as planned via ocean freight but that an impending storm may cause delays. FGH needs to stay within budget. In this situation, which of following is the BEST course of action for FGH to take?
- A. Evaluate options for a multimodal shipment
- B. Use ocean freight after the storm subsides
- C. Wait until the storm's path can be predicted more accurately
- D. Arrange for immediate air freight of the equipment
Answer: B
Explanation:
Marine transportation is the best option for promoting international trade and transporting large quantities of products at a low cost. It allows for economies of scale, making it the most cost-effective mode for bulk shipments. References: Global trade studies frequently cite maritime shipping as a key enabler of international commerce due to its capacity and cost benefits.
NEW QUESTION # 57
An organization's capital expenditure policies are MOST closely aligned with which of the following types of assets?
- A. Intangible
- B. Fixed
- C. Current
- D. Deferred
Answer: B
Explanation:
Capital expenditure policies primarily relate to fixed assets, as they involve investments in long-term assets that are capitalized and depreciated over time. Reference: Horngren, C. T., Datar, S. M., & Rajan, M. V.
(2015). Cost Accounting: A Managerial Emphasis.
NEW QUESTION # 58
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