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ISM Supply Management Integration Sample Questions (Q141-Q146):

NEW QUESTION # 141
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. Incoterms 2020 rules
B. International law
C. Reverse logistics
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 # 142
A wine bar which also serves tapas and sandwiches notices that its customer volume fluctuates significantly (depending on convention tourism and hotel night stays) and that wait times for seating are growing longer. As a result, managing demand for perishable food products is becoming more challenging.
Which of the following would be MOST useful in this scenario?

A. Box-Jenkins method
B. Single period model
C. Winters model
D. Least squares regression

Answer: B

Explanation:
The single period model is suitable for managing demand for perishable items with fluctuating customer volume. It helps in optimizing inventory levels for items with limited shelf life, reducing waste and stockouts.
References: Inventory management techniques emphasize the use of single period models for perishable goods to balance supply and demand effectively.

NEW QUESTION # 143
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?

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

Answer: D

Explanation:
Negotiating a grace period allows the manufacturer to utilize the existing inventory of non-environmentally friendly boxes while planning a transition to meet the customer's requirements. This approach balances customer satisfaction and cost efficiency, avoiding waste and financial loss. References: Supply chain flexibility and customer relationship management practices emphasize negotiation as a key strategy in adapting to changing customer demands.

NEW QUESTION # 144
A supplier with a previously good performance record has recently been shipping parts with a number of flaws, making them unusable for production. The firm's supply manager would like to resolve these problems before taking more drastic measures. Which of the following actions should the supply manager take FIRST'

A. Re-work the parts in-house and bill the supplier for any costs incurred
B. Test the parts at an independent laboratory and notify the supplier of the results
C. Ask engineering to review tolerances on non-critical specifications and relax them if possible
D. Explore possible root causes, including changes in the supplier's production processes

Answer: D

Explanation:
When a previously reliable supplier starts delivering flawed parts, the first step should be to ex-plore possible root causes. This approach helps in identifying any recent changes in the supplier's production processes, materials, or workforce that might be contributing to the quality issues. By understanding the root cause, the supply manager can work with the supplier to implement correc-tive actions, ensuring long-term solutions rather than temporary fixes. This collaborative approach also maintains a good relationship with the supplier and encourages continuous improvement. References:
*Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
*Burt, D. N., Petcavag

NEW QUESTION # 145
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?

A. Recovery
B. Hedging
C. Dumping
D. Short selling

Answer: C

Explanation:
Dumping refers to the practice of exporting a product at a price lower than the price in the exporter's domestic market. This often leads to trade disputes as it can harm industries in the importing country. Reference:
International trade regulations and anti-dumping measures.

NEW QUESTION # 146
......

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