Free ISM INTE Practice Test & Real Exam Questions

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''

Which of the following refers to an agreement between a buyer and supplier in which vendor-owned inventory is stored on the buyer's floor until it is used in production?

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?

When executing a new project, which of the following is MOST important to a smooth transition?

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

DFG Inc. has been experiencing declining sales in its consumer division. After analyzing its sales data, the company determines that racial and ethnic minorities are underrepresented as consumers of its products. DFG decides to focus on increasing its appeal to these groups. DFG's products are of excellent quality and value, and the firm believes that its sales are weak with this segment because of a lack of knowledge about DFG and its products.
Which of the following is the FIRST step that DFG should undertake?

A manufacturer of gardening products has many international suppliers. Because of extended lead-times and logistical concerns, it is critical that the company provides accurate seasonal demand planning data to its suppliers. Given this situation, which of the following types of feedback from the supplier would be MOST critical to the manufacturer?

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 and wishes to apply NPV over that time period to the calculations:
Option 1Option 2Option 3Option 4
Re-tooling Costs$0$500,000$800,000$950,000
Annual Material Costs$1,100,000$900,000$800,000$750,000
NPV = £ r.i (l*r/
What is the 3-year NPV of the best option'

A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should

Which of the following is MOST likely to be an advantage of a standardization program?

A product has the following characteristics:
COGS$1,000,000
Starting Inventory20,000
Ending Inventory10,000
What is the inventory turnover of this item'

Which of the following is calculated by taking the selling price of the buyer's end product and subtracting the required profit?

XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take?

A graph of a firm's inventory replenishment system reveals the following:

Which of the following is TRUE'