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  • Exam Name: Supply Management Integration
  • Last Update: 23-Jul-2024
  • Questions and Answers: 167
  • Single Choice: 167 Q&A's

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INTE Questions and Answers

Question # 1

A company needs 1,000 widgets in Year 1 and projects that it will need 1,200 widgets in Year 2. The Year 1 order cost for widgets is $5, and the Year 1 carrying cost is S4. A recent contract renewal with the company's 3PL warehouse supplier will increase carrying costs in Year 2 to S6. How, if at all, will the Economic Order Quantity (EOQ) be affected?


The EOQ will increase in Year 2 to 54 units.


The EOQ will stay the same in Year 2.


The EOQ will decrease in Year 2 to 32 units.


The EOQ will decrease in Year 2 to 45 units.

Question # 2

A supply manager collects data on all suppliers regarding their on-time delivery performance. The data are sorted in order of supplier percentage of on-time delivery. This type of analysis is known as which of the following?


Cause and effect analysis


Kepner-Tregoe method


Pareto analysis



Question # 3

A manufacturing firm redesigns its premier product to benefit from material standardization. This will entail re-tooling its manufacturing facility. The firm conducts a cost analysis using net present value (NPV) and considers four options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations. The discount rate for NPV calculation is 10% per annum, and material costs are fixed for the next 3 years. The firm follows a three-year planning cycle and wishes to apply NPV over that time period to the calculations:

Option 1Option 2Option 3Option 4

Re-tooling Costs$0$500,000$800,000$950,000

Annual Material Costs$1,100,000$900,000$800,000$750,000

NPV = £ r.i (l*r/

What is the 3-year NPV of the best option’









Question # 4

Analysis of inventory turnover is generally considered part of what status assessment ratio?


Financial efficiency


Working capital


Operating expense



Question # 5

A scientific equipment company wants to encourage its key suppliers to participate in the firm's quality certification program. The process is detailed and time-consuming. Which of the following is likely to be the GREATEST benefit to the buying organization?


Rationalized supply base


Faster incoming inspections


Reduced transaction time


Lower total costs

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