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ISM Supply Management Integration Sample Questions (Q79-Q84):

NEW QUESTION # 79
A company that has never focused on supply management in the past is now faced with increasing competition from new, innovative products entering its market. As a result, the firm's business strategy includes an increased focus on cost containment. Given this situation, which of the following should the company do FIRST?

A. Raise the reporting level of key supply management personnel
B. Consolidate tactical supply management positions where possible
C. Create an executive position for supply management
D. Standardize global processes

Answer: A

Explanation:
Raising the reporting level of key supply management personnel is crucial for integrating supply management into the company's strategic focus. This ensures that supply management decisions align with executive strategies on cost containment and competitiveness, enhancing visibility and influence.

NEW QUESTION # 80
A company logistics manager is informed that, because of an emergency, part of the firm's ocean-going cargo had to be thrown overboard. The losses are to be split 50/50 between the shipper and the freight company.
Which of the following pertains MOST closely to this issue?

A. Reverse logistics
B. International law
C. Incoterms 2020 rules
D. Maritime law

Answer: D

Explanation:
Maritime law governs incidents at sea, including jettisoning cargo to save a vessel during emergencies. This scenario reflects principles of general average, where losses are shared among parties. Reference: Tetley, W.
(2002). Marine Cargo Claims.

NEW QUESTION # 81
Which of the following refers to an operations management philosophy whose objective is to reduce waste and cycle time?

A. Total Quality Management
B. Process Mapping
C. ABC Analysis
D. Just-In-Time

Answer: D

Explanation:
Just-In-Time (JIT) is an operations management philosophy aimed at reducing waste and cycle time. It focuses on producing only what is needed, when it is needed, and in the amount needed, thereby minimizing inventory levels and enhancing efficiency. This approach leads to reduced costs and improved product quality.
Reference: Lean manufacturing principles and JIT methodologies.

NEW QUESTION # 82
A company produces and distributes its products in the continental United States, mostly to customers located in metropolitan areas. The company conducts an ABC analysis to classify items, and determines that A and B items have variable demand, while C items have relatively stable demand. The logistics group wants to use this information to minimize transportation costs. Which of the following is the BEST combination of modes for the firm to use in order to minimize costs?

A. Use air freight for A and B items, motor carriage for C items, and intermodal rail only as needed
B. Use motor carriage for A and B items, intermodal rail for C items, and air freight only as needed
C. Use water service for A and B items, motor carriage for C items, and air freight only as needed
D. Use intermodal rail for A and B items, air freight for C items, and motor carriage only as needed

Answer: B

Explanation:
To minimize transportation costs, the logistics group should use motor carriage for A and B items, intermodal rail for C items, and air freight only as needed. Motor carriage provides flexibility and is cost-effective for variable demand items (A and B items), especially when these items need timely deliveries in metropolitan areas. Intermodal rail is ideal for C items with stable demand as it is more cost-effective for transporting large volumes over long distances. Air freight, being the most expensive, should be reserved for urgent needs only.
This combination leverages the strengths of each transportation mode to optimize cost and efficiency.
References:
*Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2016). Supply Chain Manage-ment: A Logistics Perspective. Cengage Learning.
*Murphy, P. R., & Knemeyer, A. M. (2018). Contemporary Logistics. Pearson.

NEW QUESTION # 83
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

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

Answer: B

Explanation:
Given the short lead time and the need for rapid market entry, leveraging an existing strategic supplier's capabilities is optimal. This approach minimizes delays and leverages established relationships and processes, ensuring the product can be developed and delivered efficiently.

NEW QUESTION # 84
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