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  • Questions: 167 Q&A's With Detailed Explanation
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  • Exam Name: Supply Management Integration
  • Last Update: 23-Jul-2024
  • Questions and Answers: 167
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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?

A.

The EOQ will increase in Year 2 to 54 units.

B.

The EOQ will stay the same in Year 2.

C.

The EOQ will decrease in Year 2 to 32 units.

D.

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?

A.

Cause and effect analysis

B.

Kepner-Tregoe method

C.

Pareto analysis

D.

Benchmarking

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’

A.

$2,939,000

B.

$2,692,712

C.

$2,961,983

D.

$2,735,537

Question # 4

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

A.

Financial efficiency

B.

Working capital

C.

Operating expense

D.

Debt-to-equity

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?

A.

Rationalized supply base

B.

Faster incoming inspections

C.

Reduced transaction time

D.

Lower total costs

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