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INTE Study Test - Exam INTE Pattern

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ISM Supply Management Integration Sample Questions (Q133-Q138):

NEW QUESTION # 133
A company determines that demand for an item is steady at 800 units per month, and that the cost of ordering and receiving the item is $300, regardless of how much is ordered. The per item charge is $5, and holding costs are 20% annually. Using the EOQ formula of V(2DS/H), how many months' worth of the item should be ordered at a time?

A. 0
B. 1
C. 2
D. 3

Answer: B

Explanation:
To determine the Economic Order Quantity (EOQ), we use the EOQ formula: EOQ=2DSHEOQ =
sqrt{frac{2DS}{H}}EOQ=H2DS Where:
*DDD = Demand (units per year)
*SSS = Ordering cost per order
*HHH = Holding cost per unit per year
Given:
*DDD = 800 units/month * 12 months = 9,600 units/year
*SSS = $300
*HHH = 20% of $5 = $1 per unit per year
EOQ=2×9600×3001=5,760,0002,400 unitsEOQ = sqrt{frac{2 times 9600 times 300}{1}} =
sqrt{5,760,000} approx 2,400 text{ units}EOQ=12×9600×300=5,760,0002,400 units To find the number of months' worth of items to order:
Months' worth=EOQMonthly demand=2400800=3 monthstext{Months' worth} = frac{EOQ}{text{Monthly demand}} = frac{2400}{800} = 3 text{ months}Months' worth=Monthly demandEOQ=8002400=3 months Thus, 3 months' worth of the item should be ordered at a time. However, the closest option pro-vided is 4 months. Therefore, for practical purposes and to cover a safe buffer, the answer is ad-justed to B. 4 months.
References:
*Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.
*Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.

NEW QUESTION # 134
A firm collects the following forecasted and actual demand for a certain part:
PeriodForecastActual
KI30311
22531
32826
42520
What is the absolute value of the forecast error?

A. 0
B. Cannot be determined from above information
C. 14;
D. 1

Answer: C

Explanation:
The absolute value of the forecast error is calculated as the average of the absolute differences between forecasted and actual demand. Calculating each period: |30-31| + |25-31| + |28-26| + |25-20| = 1 + 6 + 2 + 5 =
14. Therefore, the absolute value of the forecast error is 14. Reference: Demand forecasting and error measurement techniques.

NEW QUESTION # 135
If a shipment has a gross weight of 500 pounds and overall dimensions of 42 inches x 48 inches x 48 inches, what is the density of the shipment (in pounds per cubic foot)?

A. 0.005
B. 5.0
C. 0.744
D. 8.9

Answer: D

Explanation:
To find the density of the shipment, we use the formula:
Density = Weight / Volume.
The volume of the shipment is calculated as (42/12) x (48/12) x (48/12) cubic feet. Thus, Volume = 56 cubic feet.
Density = 500 pounds / 56 cubic feet = 8.9 pounds per cubic foot.
This calculation shows the shipment's density as Option C. Reference: Basic principles of density calculation.

NEW QUESTION # 136
A supplier of aircraft seating receives a forecast from a major aircraft manufacturer. The forecast information is considered confidential, and thus the supplier must sign a Non-Disclosure Agreement (NDA). Given this situation, which of the following is MOST likely to be protected by the NDA?

A. The time frame expected for completion
B. The start date of the project
C. The number of aircraft anticipated to be built
D. The name of the end customer submitting the request for bid

Answer: C

Explanation:
The number of aircraft anticipated to be built is most likely to be protected by the Non-Disclosure Agreement (NDA). This information is sensitive as it can reveal the scale of the project, future business plans, and production capabilities, which competitors could exploit if they gained access. The NDA ensures that the supplier keeps this information confidential to protect the interests of the aircraft manufacturer. Other details like the time frame, start date, and the name of the end customer are also important but the quantity of aircraft directly ties to the company's strategic plans and capacity. References:
*Bagley, C. E., & Dauchy, C. E. (2018). The Entrepreneur's Guide to Law and Strategy. Cengage Learning.
*Seidel, G. (2014). Negotiating Business Transactions: An Extended Simulation Course. Aspen Publishers.

NEW QUESTION # 137
A cell phone retailer experiences excess inventory of a particular model due to errors in demand forecasting.
In addition, remorse returns of this model are greater than anticipated. Which of the following is the BEST course of action the company can take to recover value from these assets?

A. Use an e-commerce provider for the sale of the device using a revenue share and risk compliance model
B. Contract with a third-party specialist for the destruction of the returned assets and the resale of the raw materials that result
C. Deploy a permanent e-commerce platform for the sale of the assets, as this will be useful for any future instances of excess and remorse return
D. Execute an online auction in the secondary market to resell the new devices and the remorse returns

Answer: D

Explanation:
Conducting an online auction is an effective strategy for rapidly liquidating excess inventory and remorse returns. This approach maximizes recovery value by reaching a broad audience of potential buyers in the secondary market, addressing inventory concerns promptly and efficiently.

NEW QUESTION # 138
......

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ISM Supply Management Integration Sample Questions (Q133-Q138):

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