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ISM INTE Exam Syllabus Topics:

Topic	Details
Topic 1	Supply Chain Strategy: This section deals with how to develop and implement material or service standardization programs and implement requirements planning to align supply management activities with organizational strategy.
Topic 2	Quality Management: This section covers understanding and applying quality management principles throughout the supply chain.
Topic 3	Sales and Operations Planning (SOP): This section covers sales and Operations Planning, Demand Planning, and Forecasting.
Topic 4	Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.
Topic 5	Project Management: This section covers applying project management principles to supply management activities.

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ISM Supply Management Integration Sample Questions (Q138-Q143):

NEW QUESTION # 138
During an inventory review, a supply manager confirms that parts used for the maintenance of equipment sold during the previous year are still being stored in the warehouse. These parts cannot be used on current equipment. Which of the following BEST describes these parts'

A. Obsolete
B. Expired
C. Surplus
D. Excess

Answer: A

Explanation:
Parts that were used for maintenance of equipment sold in the previous year but cannot be used on current equipment are best described as obsolete. Obsolete inventory refers to items that are no longer usable or saleable due to advancements in technology or changes in market demand. These parts should be identified and removed from active inventory to free up space and reduce carrying costs. References:
*Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.
*Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.

NEW QUESTION # 139
A graph of a firm's inventory replenishment system reveals the following:

Which of the following is TRUE'

A. The average inventory is 1,850 units.
B. There is near instantaneous replenishment.
C. The order cycle is two and a half days.
D. There is a fixed order quantity of 500 units.

Answer: B

Explanation:
The graph shows inventory levels being replenished back to the maximum level immediately after reaching zero, indicating near-instantaneous replenishment. This is characteristic of a system where the lead time for orders is very short or negligible, allowing the firm to maintain optimal inventory levels without significant delay. This approach minimizes stockouts and ensures a con-tinuous supply of inventory. References:
*Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.
*Silver, E. A., Pyke, D. F., & Thomas, D. J. (2016). Inventory and Production Management in Supply Chains.
CRC Press.

NEW QUESTION # 140
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?

A. Calculate the number of times each of the defect types have occurred over the past 90 days, and instruct the supplier to work on finding the root cause of the defect with the highest frequency
B. Calculate the number of times each of the defect types have occurred over the past two weeks, and instruct the supplier to work on finding the root cause of the defect with the highest frequency
C. Work with engineering to determine the impact each defect type has on the customer base and assist the supplier in prioritizing and solving the defect type with the highest customer impact first
D. Work with engineering to submit three corrective action requests and ask the supplier to address all three

Answer: C

Explanation:
Working with engineering to assess the impact of each defect type on customers helps prioritize corrective actions effectively. Addressing the defect with the highest customer impact first ensures that resources are focused on the most critical issues, improving product quality and customer satisfaction.

NEW QUESTION # 141
A company's average inventory value has remained relatively constant, while its cost of goods sold has increased. Which of the following will also likely show an increase for this firm?

A. Stock level
B. Cycle time
C. Variance
D. Turnover

Answer: D

Explanation:
An increase in cost of goods sold while maintaining a constant average inventory value results in higher inventory turnover. This indicates improved efficiency in managing inventory relative to sales. References:
Inventory management metrics highlight turnover as a critical measure of how effectively inventory is being utilized.

NEW QUESTION # 142
The supply manager for a semiconductor company receives an emergency phone call from the firm's factory manager, who states that the manufacturing equipment is down and that a replacement part is needed as soon as possible. The supply manager checks the stock for this part but finds nothing. In this situation, the supply manager should do which of the following?

A. Perform a cost analysis to examine if it is better to expedite the part or wait for the part's scheduled arrival date
B. Verify with the warehouse manager if there is an extra spare part in stock that was not correctly registered in the stock database system
C. Contact the equipment supplier and ask it to coordinate an expedited delivery of the part as soon as possible
D. Ask the factory manager to perform an equipment failure analysis in order to understand the root cause of the equipment failure

Answer: C

Explanation:
In urgent situations, expediting replacement parts minimizes downtime and maintains production flow. Direct communication with the supplier is critical for fast resolution. Reference: Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management.

NEW QUESTION # 143
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