FREE DOWNLOAD ISM RELIABLE CORE DUMPS FILES ARE LEADING MATERIALS & VALID CORE: SUPPLY MANAGEMENT CORE EXAM

Free Download ISM Reliable CORe Dumps Files Are Leading Materials & Valid CORe: Supply Management Core Exam

Free Download ISM Reliable CORe Dumps Files Are Leading Materials & Valid CORe: Supply Management Core Exam

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ISM Supply Management Core Exam Sample Questions (Q148-Q153):

NEW QUESTION # 148
Which of the following is the BEST reason to develop relationships with a small number of suppliers?

  • A. To Improve sourcing opportunities
  • B. To obtain pricing improvements
  • C. To identify innovation opportunities
  • D. To decrease internal cultural barriers

Answer: B

Explanation:
Developing relationships with a small number of suppliers can provide several advantages, but the best reason in a supply management context is:
* To identify innovation opportunities: While important, this can be achieved with both few and many suppliers.
* To obtain pricing improvements: Focusing on fewer suppliers often results in better negotiation leverage and volume discounts, leading to pricing improvements.
* To decrease internal cultural barriers: This is less directly related to supplier relationship management.
* To improve sourcing opportunities: This can be done with multiple suppliers as well.
Thus, the best reason to develop relationships with a small number of suppliers is to obtain pricing improvements.
References:
* Supply chain management textbooks on supplier relationship management.
* Articles on the benefits of strategic supplier partnerships.


NEW QUESTION # 149
After a year of reduced profits, a commuter rail service has decided to charge a premium for peak hour users. In a media statement released to the public, the rail service company claimed that consumers will benefit from this decision. In what way could consumers benefit from this pricing structure?

  • A. The pricing will allow the rail service to continue to serve consumers with lower willingness to pay.
  • B. The price change makes it more likely that competitors will enter the market.
  • C. On average, consumers will have a greater share of the value created by the rail service after the price change.
  • D. The pricing structure will increase congestion during peak hours.

Answer: A


NEW QUESTION # 150
Questions pertaining to standardizing products, reducing the number of suppliers, and combining volumes to attain better pricing are BEST addressed by which of the following?

  • A. Spend analysis
  • B. ERP system
  • C. Category strategy
  • D. Category action plan

Answer: C


NEW QUESTION # 151
Consider the following data for four separate machines:
Purchase PriceProjected Annual SavingsEstimated Life (in years)
Machine W$100,000$17,0006
Machine X$112,000$23,0007
Machine Y$143,000$19,0009
Machine Z$150,000$25,0008
Which machine produces the HIGHEST simple return on investment (ROI) over its useful life?

  • A. W
  • B. X
  • C. Y
  • D. Z

Answer: B

Explanation:
To determine which machine produces the highest simple return on investment (ROI) over its useful life, we calculate the ROI as follows:
ROI=(Total SavingsPurchase PricePurchase Price)×100text{ROI} = left( frac{text{Total Savings} -
text{Purchase Price}}{text{Purchase Price}} right) times
100ROI=(Purchase PriceTotal SavingsPurchase Price)×100
* Machine W:
* Total savings = $17,000 times 6 = $102,000
* ROI = (102,000100,000100,000)×100=2%left( frac{102,000 - 100,000}{100,000} right) times
100 = 2%(100,000102,000100,000)×100=2%
* Machine X:
* Total savings = $23,000 times 7 = $161,000
* ROI = (161,000112,000112,000)×10043.75%left( frac{161,000 - 112,000}{112,000} right)
times 100 approx 43.75%(112,000161,000112,000)×10043.75%
* Machine Y:
* Total savings = $19,000 times 9 = $171,000
* ROI = (171,000143,000143,000)×10019.58%left( frac{171,000 - 143,000}{143,000} right)
times 100 approx 19.58%(143,000171,000143,000)×10019.58%
* Machine Z:
* Total savings = $25,000 times 8 = $200,000
* ROI = (200,000150,000150,000)×10033.33%left( frac{200,000 - 150,000}{150,000} right)
times 100 approx 33.33%(150,000200,000150,000)×10033.33%
Machine X produces the highest simple return on investment (ROI) over its useful life at approximately
43.75%.
References:
* Financial management textbooks on ROI calculation.
* Case studies on capital investment decisions.


NEW QUESTION # 152
A manufacturing company signs a cost-reimbursable contract with a new customer that needs a large volume of its product manufactured in a short period of time. The product is difficult and time consuming to fabricate.
The contract provides generous flexibility for cost but has severe consequences if the deadline is missed. To ensure the timely completion of the contract, the manufacturer plans to negotiate with a lower-tier supplier for a critical sub-component.
Given this situation, which of the following negotiation objectives is MOST closely aligned with the interests of the manufacturing firm?

  • A. Expediting fabrication and delivery of the sub-component
  • B. Achieving a 10% reduction in price
  • C. Implementing enhanced quality inspections prior to shipment
  • D. Providing a 5% discount for prompt payment of invoices

Answer: A

Explanation:
Given the tight deadline and the severe consequences for missing it, the most closely aligned negotiation objective for the manufacturing firm is to expedite the fabrication and delivery of the sub-component.
Ensuring timely delivery is crucial to meet the contract deadline. While cost savings and payment terms are important, the primary focus must be on timely completion to avoid penalties. Enhanced quality inspections can also be important but are secondary to the urgency of meeting the deadline in this context.
References:
* Fisher, M. L. (1997). What is the right supply chain for your product? Harvard Business Review.
* Burt, D. N., Dobler, D. W., & Starling, S. L. (2003). World Class Supply Management.


NEW QUESTION # 153
......

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