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ISM Supply Management Integration Sample Questions (Q124-Q129):
NEW QUESTION # 124
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. 8.9
- D. 0.744
Answer: C
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 # 125
NXY, Inc. buys high-quality fragile products from a supplier. Numerous shipments from this supplier have arrived with dents on the packages, resulting in damaged products. Given this situation, which of the following is the FIRST course of action WXY should take?
- A. Modify the product design in order to avoid damages during transit
- B. Send the supplier pictures of the damaged packages and request improvements
- C. Contact the freight forwarder and inquire as to why such damages are occurring so frequently
- D. Verify that the Incoterms 2010 rule being used ensures that the responsibility is not on the supplier's side
Answer: B
Explanation:
The first course of action is to send pictures of the damaged packages to the supplier and request improvements. This step helps establish clear communication regarding the problem and provides visual evidence that can lead to corrective actions by the supplier. It's important to address quality issues directly with the supplier to ensure packaging meets the necessary standards. References: Supply chain management principles highlight the importance of supplier communication and collaboration in resolving quality issues.
NEW QUESTION # 126
BCD, Inc. is an electronics manufacturer. For many years, BCD has purchased custom white packaging with the company's signature black and red logo. Recently, BCD's quality team rejected a large number of these boxes due to the red and black portions of the logo not being correctly aligned. In addition, BCD's program manager has requested that supply management reduce the costs of the packaging, which have risen dramatically in recent years.
BCD's supply manager meets with the current supplier and learns the following:
1)The two-tone logo requires multiple setups, and the logo is often misaligned, leading to scrap
2)A single-color logo will not have alignment problems
3)The white boxes are more expensive to produce than plain cardboard boxes
4)The marketing team has determined that the all-white packages are no longer a unique way to brand the organization's products Given this situation, which of the following would be the BEST course of action for BCD's supply manager to take?
- A. Work with the quality and marketing teams as well as the supplier to negotiate the purchase of plain boxes with a single-color logo
- B. Renegotiate the current pricing for the white boxes by increasing volume and contracting for a longer period of time
- C. Work with the supplier's quality team to correct the misalignment problem
- D. Create and issue a Request for Proposal (RFP) in order to find new suppliers to provide the all-white boxes with the two-tone logo
Answer: A
Explanation:
The best course of action is to work with the quality and marketing teams, as well as the supplier, to negotiate the purchase of plain boxes with a single-color logo. This solution addresses the alignment issues and reduces costs while aligning with the marketing team's assessment that all-white packaging is no longer unique.
Reference: Cost reduction and quality improvement in supply chain management.
NEW QUESTION # 127
A firm wants to contract with two suppliers to develop a cellphone tower servicing five million customers. The new technology is required within the next 36 months and has a large budget. The following suppliers are under consideration:
*Supplier A - Has been in business for 20 years; however, every two to three years, its labor force goes on strike
*Supplier B - An established business located in an overseas country which may charge an additional 2% duty on some imported goods
*Supplier C - An established business which has been closed on recent occasions by governing authorities due to health and safety violations
*Supplier D - Has the smallest facilities and workforce of the four, but will be expanding over the next three months and has successfully subcontracted work in order to meet timelines Based on this information, which two suppliers offer the BEST capacity and capability?
- A. Suppliers C and D
- B. Suppliers A and C
- C. Suppliers A and B
- D. Suppliers B and D
Answer: D
Explanation:
Suppliers B and D offer the best capacity and capability for the project. Supplier B is established and can handle large budgets, despite potential duties, while Supplier D is expanding and has a successful track record of subcontracting to meet deadlines. These factors make them the most reliable choices for meeting the project's requirements within the 36-month timeline. Reference: Supplier selection criteria in supply chain management.
NEW QUESTION # 128
A manufacturer is concerned that excess packaging materials used for a product will send the wrong message to consumers who may have selected the product based on its sustainable design. How can supply management positively impact this situation?
- A. Include a notice with the product explaining that the packaging is recyclable
- B. Increase the amount of shrink-wrap packaging
- C. Work with product development to ensure sustainable packaging is developed
- D. Verify that recyclable packaging materials are properly coded for sorting
Answer: C
Explanation:
Collaboration with product development to create sustainable packaging aligns product presentation with consumer expectations of sustainability, enhancing brand image. Reference: Kotler, P., & Keller, K. L. (2016).
Marketing Management.
NEW QUESTION # 129
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