Free ISM INTE Practice Test & Real Exam Questions

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?

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?

There are 10,000 units in stock for the beginning of January, and maximum inventory holding is 19,000 units.
Sales are recorded at the end of the month.
Procurement receives a communication from one of its retailers that it is planning a promotional event in July.
The retailer forecasts that it will require an additional 20,000 units. By how much should the level production strategy increase its monthly output of units in order to meet the requirements of the retailer and minimize overall inventory levels?

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 supply manager is reviewing safety stock for a particular unit. The unit is small, Inexpensive, non-perishable, and easily stored, but is critical to the firm's manufacturing process. The following information is known about this unit:
Maximum lead time = 8 Days
Average lead time = 3 Days
Maximum daily usage = 6,000 Units
Average daily usage = 4,000 Units
What is the maximum safety stock that should be maintained for this unit?

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 manufacturing firm redesigns its premier product to benefit from material standardization. The change will entail re-tooling costs. The firm conducts a cost benefit analysis on four possible options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations involving different materials:
Option 1Option 2Option 3Option 4
Re-tooling Costs (Year 1)$0$800,000$1,000,000$1,200,000
Material Costs
Year 151,000,000$700,000$650,000$600,000
Year 2$1,100,000$750,000$700,000$650,000
Year 3SI,200,000$800,000$750,000$700,000
Year 451,300,000$850,000$800,000$750,000
Year 551,400,000$900,000$850,000$800,000
Total$6,000,000$4,000,000$3,750,000$3,500,000
Labor Costs
Year 1$1,000,000$700,000$650,000$600,000
Year 2$1,100,000$770,000$715,000S660,000
Year 3$1,210,000$847,000$786,500$726,000
Year 4$1,331,000$931,700$865,150$798,600
Year 5$1,464,100$1,024,870$951,665$878,460
Total$6,105,100$4,273,570$3,968,315$3,663,060
In addition to this, there will be a cost of $3.5 million in lost production during Year 1, should any of the re-tooling options (2, 3, or 4) be selected.
The firm wants to rank the options in order of financial preference, from the best option to the worst. Based on this information, how should the four options be ranked?

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?

MNO, Inc. operates within a volatile industry in which unforeseen demand and events often result in unreliable forecasts. Which of the following is the BEST way for MNO to generate better information about demand and improve forecast accuracy?

Which of the following is a key requirement of xRP7

A supply manager for a U.S. firm is tasked with negotiating domestic shipping terms. The terms must ensure that the supplier has liability for any damaged products and is responsible for filing any claims with the shipper. The terms must also allow the buying firm to pay the shipper directly for shipping costs. Which of the following will BEST accomplish this objective?

Which of the following buying strategies refers to planning inbound material purchases and flows without the need for significant inventory levels7

Which of the following is the BEST reason to use Monte Carlo simu-lations to improve a forecast7

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