Test Online INTE Dumps Questions to Be Certified

1. Consider the following data comparing actual demand versus forecast demand:

What is the Mean Annual Percent Error (MAPE) for the six months of data?

2. XYZ, Inc. has experienced a significant increase in the number of expedited orders with a key supplier over the last few months. In this situation, XYZ should

3. A disaster response manager plans to deliver pallets of bottled water to volunteers at a disaster site. The water comes from a nearby bottling company at a preferential cost of $50 per pallet. The number of pallets of bottled water needed is impossible to know in advance due to numerous variables, although experience indicates that the likelihood of consumption is equal: a 25% chance each for 1, 2, 3 or 4 pallets of bottled water. If a full pallet is returned, a restocking fee of 520 is charged. If not enough water is brought in, the cost of purchasing a pallet of water on location is expected to be $200.

How many pallets should the manager deliver?

4. XYZ Company engages a freight bureau to conduct an audit of its freight forwarder.

How can XYZ BEST utilize the information obtained from this review?

5. Which of the following categories is regarded as low risk and low value?

6. 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?

7. UVX, Inc. is seeking suppliers of components to be used in a new heavy equipment product UVX is introducing in the marketplace. The firm conducts a market intelligence analysis and spend analysis to determine feasibility. These findings are reported to the company stakeholders, who decide to produce 25 units every two weeks. UVX issues a solicitation for bids and includes the stakeholders' requirements with the specifications.

At the close of the bidding process, UVX receives one offer that can deliver enough components to produce 15 units every four weeks. The remaining potential bidders decline altogether, citing an inability to meet UVX’s specifications.

Which of the following should UVX have done in order to ensure a better response to the solicitation?

8. A firm sells an average of 2,000 units of snacks from its existing stock while it waits for orders to be delivered. Demand during lead time varies in accordance with a normal distribution.

The firm's supply manager prepares a presentation to explain the concept of customer service and safety stock levels using the following figure:





What does the shaded area D (in red) represent?

9. A manufacturing firm's facility operates a level production strategy. The initial demand plan is as

The supply management department learns that one of its retailers is planning a promotional event on August 1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of January, and maximum inventory holding is 15,000 units.

How many units per month should production increase in order to meet the requirements of its retailer and minimize overall inventory levels?

10. A supplier of aircraft seating receives a forecast from a major aircraft manufacturer. The forecast information is considered confidential, and thus the supplier must sign a Non-Disclosure Agreement (NDA).

Given this situation, which of the following is MOST likely to be protected by the NDA?

11. MNO, Inc. is a national retail home goods chain formed of local franchisees. Each franchisee uses its own returns processing systems. A key advertising point for MNO is its liberal return policy, which is part of its overall focus on excellent customer service. While feedback from customers is positive regarding MNO’s return policy, there have been inquiries as to why stores handle returns via different processes. MNO’s supply manager suggests the implementation of a reverse supply chain to deal with this issue and possibly yield cost enhancement opportunities. In order to implement this, which of the following is the FIRST course of action the supply manager should take’’

12. GHI, Inc. is a U.S.-based company with an expanding product line. GHI widens its sourcing of components to global suppliers, including suppliers in countries which are not included in trading blocs or bilateral agreements with the United States.

Compliance with which of the following will MOST likely reduce GHI's administrative burden of cargo inspections on materials imported from these sources?

13. A product has the following characteristics:

What is the inventory turnover of this item’

14. A manufacturer is updating its production plans for the remainder of the year. The firm has already obtained revised needs information from its customers, as well as the finance and sales teams.

Which of the following additional information would be MOST useful to the firm?

15. For many years, WXY Company's policy has been to buy only domestically manufactured MRO materials and maintain quantities of these materials at each operating location. A recent analysis reveals that this practice is not the most efficient and effective way for this firm to manage its MRO purchases.

Given this situation, which of the following is the BEST course of action for WXY’s supply management department to take?

16. 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’

17. Which of the following is the PRIMARY benefit of project governance?

18. Which of the following refers to the practice of buying a commodity on the open market for immediate delivery?

19. A manufacturer is working to standardize high-volume, low-cost hardware components used in its assembly process. The manufacturer wants to transfer some of the risks associated with inventory carrying costs, warehousing costs, and re-stocking costs to the supplier.

Which of the following will be MOST useful in accomplishing this goal?

20. A manufacturer must work to reduce cost of goods sold (COGS) to achieve profit objectives and remain competitive in a tight market. The manufacturer has long standing relationships with its main suppliers and a strong supply management department that conducts periodic reviews with the suppliers. Nevertheless, the manufacturer is not hitting targets.

Which of the following is the BEST course of action for supply management to undertake in order to initiate improvements?

21. A company needs 1,000 widgets in Year 1 and projects that it will need 1,200 widgets in Year 2. The Year 1 order cost for widgets is $5, and the Year 1 carrying cost is S4. A recent contract renewal with the company's 3PL warehouse supplier will increase carrying costs in Year 2 to S6.

How, if at all, will the Economic Order Quantity (EOQ) be affected?

22. An organization has a forecast for June of 125 units. However, 140 units actually sell.

What is the exponential smoothing forecast for July if the alpha is 0.2?

23. 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?

24. The packaging optimization process begins by understanding which of the following?

25. The sourcing manager for a regional retail bakery chain reviews order quantities and stocking for

perishable condiments on a quarterly basis.

Which of the following factors should be the MOST critical consideration in this analysis?

26. A manufacturing firm redesigns its premier product to benefit from material standardization. This will entail re-tooling its manufacturing facility. The firm conducts a cost analysis using net present value (NPV) and considers four options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations. The discount rate for NPV calculation is 10% per annum, and material costs are fixed for the next 3 years. The firm follows a three-year planning cycle

What is the 3-year NPV of the best option’

27. XYZ Company is a manufacturer that buys raw materials from Supplier A. In the past several years, Supplier A has experienced increasingly unpredictable order patterns from XYZ, which has necessitated it carry more inventory as safety stock. A meeting with XYZ reveals that this is because XYZ frequently stocks out of items its upstream customers require, and thus orders more than it needs in order to ensure that it is covered.

Which of the following BEST describes the problem within this supply chain?

28. 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?

29. A cell phone retailer experiences excess inventory of a particular model due to errors in demand forecasting. In addition, remorse returns of this model are greater than anticipated.

Which of the following is the BEST course of action the company can take to recover value from these assets?

30. An organization's capital expenditure policies are MOST closely aligned with which of the following types of assets?

31. A company develops long range material forecasts, analyzes industry trends, determines commodities for value analysis, and assesses supplier capabilities to assure continual economic supply of goods and services.

This company is engaged in

32. A supply manager is seeking to align the procurement function with the organization's business strategy and growth potential.

Which of the following is the BEST initial course of action to take in this instance7

33. Which of the following refers to the percentage of order requirements met through stock that is present on the shelf?

34. A company supply manager conducts a review of current freight contracts and finds that payments to the primary carrier for outbound shipments have been based on a published rate schedule, which is revised annually. The supply manager believes the shipping costs may be higher than necessary.

In order to reduce outbound transportation costs, which of the following should the supply manager do FIRST’

35. Selection of a supplier takes place during which of the following phases of the project management process?

36. Which of the following BEST explains why forecast accuracy is important in contracts with suppliers?

37. A specialized sewing shop quilts fabrics for use in upholstered furniture. Various patterns are produced on different machines, each of which has its own set-up routine. At times, one type of machine is idle while others are backed up. The sewing floor supervisor finds new software which makes the machines' patterns interchangeable.

Which of the following is the MOST likely result of

upgrading to the new software?

38. 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?

39. DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy.

The sales forecast for the ramp-up period is as follows:

Month Jul Aug Sep Oct Nov Dec Jan Feb

Unit Sales 100 150 200 600 1,400 2,200 4,000 10,000

Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.

There are only three suppliers capable of providing the specialized component critical to this product.

The production capacities of these suppliers are as follows:

• Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business

• Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business

• Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business

Two of these companies―Supplier X and Supplier Y―are minority businesses.

Given this situation, DEF should contract with

40. A firm completes its near level production, five-month demand plan for the next business planning cycle:

What is the cost of this demand plan?

41. A home goods manufacturer runs an annual sales promotion, and the promotion achieves success beyond the firm's expectations. As a result, the firm runs short of a critical material. The firm purchases additional material, only to be left with excess inventory once the promotion runs its course.

To avoid this situation, which of the following should the organization have considered?

42. Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time.

Which of the following should the buying firm do in this instance?

43. A manufacturer has historically ordered fasteners utilizing monthly fixed order quantities. The firm wishes to explore the feasibility of using economic order quantity (EOQ), and determines that the EOQ is less than the supplier’s quoted price break.

Which of the following is the BEST course of action for the firm to take?

44. A supply manager is part of a ramp-up team for a new product line. The supply manager's role will include finding and evaluating new sources and obtaining commitments to support the volume projected by marketing. In recent campaigns, sales forecasts have been considerably higher than actual demand, and the supply manager wants to minimize the risk of such a situation happening again.

Which of the following arguments made by the supply manager will MOST likely influence the team to re-examine product launch expectations?

45. MNO, Inc. is a manufacturing firm. MNO's end-of-year inventory is 54,000,000 and its cost of goods sold is $2,300,000. For the previous year, MNO's end-of-year inventory was $5,000,000 and the cost of goods sold was $3,000,000.

What is this year's inventory turnover?

46. A well-established retailer of consumer goods has earned a reputation for providing high quality merchandise at competitive prices. In recent years, however, the retailer has experienced a steady decline in sales within its stores.

Which of the following is the BEST course of action for the retailer to take?

47. 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?

48. A distributor receives orders from a customer for the following parts:

PO1801: 6 pcs of Item #XYZ-06

3 pcs of Item #XYZ-09 PO1802: 3 pcs of Item #XYZ-09

Item #XYZ-06 is currently out of stock. The shipping manager contacts the customer, who gives authorization to ship the available parts and back order the rest.

What is the line count fill rate for the customer?

49. Which of the following describes a market structure where there are few sellers and many buyers and where price is controlled by either an industry leader or a cartel?

50. A manufacturing firm prepares the following materials requirement plan (MRP):

Master Production Schedule

Using MRP methodology, how much of Item B should be ordered, and when should it be ordered7