Free Supply Management Integration Exam INTE Exam Practice Test

An engineering team requests assistance from a supply manager to resolve an issue related to a new product under development. The product is seasonal, and the organization has a short lead time to bring the product to market. Given this situation, which of the following is the BEST course of action for the supply manager to take7

• In-source product manufacturing
• Investigate capability of an existing strategic supplier
• Conduct a request for information to identify potential suppliers
• Sell the product design to a third party

A vice president (VP) of supply management receives numerous complaints regarding the length of time it takes to receive products after they have been ordered. This has resulted in the company losing business due to late customer deliveries. Which of the following is the FIRST step the VP should take in order to address this issue?

• Apply Winter’s Model in order to improve forecast demand for the company's products
• Create a value stream map to identify bottlenecks in the order-to-delivery process
• Meet with engineering to discuss how the product is made in order to identify areas for improvement
• Meet with the company’s 3PL provider to determine why they are taking so long to deliver product

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

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?

• Wait until the storm's path can be predicted more accurately
• Evaluate options for a multimodal shipment
• Arrange for immediate air freight of the equipment
• Use ocean freight after the storm subsides

A company purchases raw materials from a domestic supplier that offers competitive overland transportation rates. The firm requires the goods be delivered to its manufacturing plant. Which of the following Incoterms® 2020 rules should be used if the firm wants risk to transfer at the manufacturing plant?

• CIP
• DAP
• FCA
• FOB

XYZ, Inc. is a company based in the United States. XYZ purchases a large quantity of raw materials from a supplier in the Dominican Republic. The supplier packages the materials and delivers them to the shipping company designated by XYZ and loads them onto the ship. The contract specifies FreeCarrier At (FCA) Caucedo, Dominican Republic. While the ship is still in port, a hurricane damages the ship and ruins its cargo. Under Incoterms® 2020 rules, who owns the shipment at this point?

• The supplier, because it has not yet been delivered to the plant
• The supplier, because it has not yet been unloaded
• The buyer, because the invoice has been paid
• The buyer, because the supplier delivered it to the designated carrier

A supply manager is responsible for the raw material supply to a manufacturing operation. After three months of successfully meeting key performance indicators (KPIs), the supply manager conducts a meeting with stakeholders—including engineers, manufacturing technicians, supply chain personnel, and finance team members—to solicit their feedback regarding the raw material supply chain. Which of the following quality management principles is the supply manager executing?

• Implementing requirements planning to align supply management activities with organizational strategy
• Creating systems and process improvements to help the organization meet sales goals
• Structuring the supply chain in support of the organization's business strategy
• Implementing continuous improvement processes within the supply chain

A company introduces a new product line. Although the line is selling well, profit margins are barely at the break-even point. In this situation, which of the following is MOST likely to improve profit margins’

• Conduct an analysis of all cost factors, including labor and overhead, to identify possible savings
• Determine whether in-house production of the components would be more economical
• Negotiate more favorable pricing with suppliers, using the promise of future business if the new line succeeds
• Research prices for similar products in the marketplace to determine if the company can raise its prices

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?

• Disposing of the existing boxes and switching to environmentally-friendly materials
• Explaining the situation to the customer and offering the products in the existing boxes at a discounted price
• Negotiating a grace period with the customer to allow a gradual switch from the existing design to the new one
• Using the leftover boxes for internal purposes within the organization

Which of the following refers to the exporting of a product by a country or company at a price that is lower in the foreign importing market than the price charged in the exporter's domestic market?

• Short selling
• Dumping
• Hedging
• Recovery