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ISM Supply Management Core Exam Sample Questions (Q193-Q198):

NEW QUESTION # 193
Exhibit: Based on the histogram below of 28 nations' performances in the Winter Olympic games, in which bin would the median be located?

A. 0
B. 1
C. 2
D. 3

Answer: D

NEW QUESTION # 194
What transaction is presented in the above journal entry?

A. Amortization of prepaid rent
B. Rent paid in installments
C. Accrual for rent outstanding
D. Payment of rent in advance

Answer: A

NEW QUESTION # 195
Which of the following explains external category market conditions by describing competitive factors within an industry?

A. Request for information
B. SWOT analysis
C. Supplier analysis
D. Porter's Five Forces

Answer: D

Explanation:
* External Category Market Conditions: These are factors outside the organization that can affect the supply market.
* Porter's Five Forces: This framework analyzes the competitive forces within an industry, which include:
* The threat of new entrants
* The bargaining power of buyers
* The bargaining power of suppliers
* The threat of substitute products or services
* The intensity of competitive rivalry
* Application: Using Porter's Five Forces helps in understanding the dynamics of the industry and how they affect the company's position and strategy.
* Strategic Decision Making: This analysis informs supply managers about potential risks and opportunities, enabling them to make better strategic sourcing decisions. References
* Michael E. Porter's "Competitive Strategy: Techniques for Analyzing Industries and Competitors".

NEW QUESTION # 196
A US-based manufacturing firm receives a quoted price for an item from an offshore supplier of $.40 each (in US dollars), delivered duty paid to its US plant per Incoterms 2020 rules, in minimum quantities of 20,000 units. The buying organization uses 80,000 units per year, and the carrying cost is 25%. The item price is fixed for one year. What are the total costs of purchasing annual requirements from this supplier?

A. $32,000
B. $33,000
C. $36,000
D. $40,000

Answer: A

Explanation:
* Given Data:
* Unit price: $0.40
* Annual usage: 80,000 units
* Carrying cost: 25%
* Minimum order quantity: 20,000 units
* Total Purchase Cost:
* Unit price multiplied by annual usage: $0.40 * 80,000 = $32,000
* Additional Costs:
* As the item price is fixed and includes delivery (DDP Incoterms 2020), there are no additional duties or transportation costs.
* Carrying Cost Calculation:
* For the minimum order quantity, the carrying cost is not a factor because the question specifies a fixed price per unit delivered.
* Conclusion: The total cost of purchasing 80,000 units per year at $0.40 each is $32,000.
References
* Incoterms 2020 by International Chamber of Commerce (ICC).
* Supply Chain Management: Strategy, Planning, and Operation by Sunil Chopra.
* The Handbook of Logistics and Distribution Management by Alan Rushton, Phil Croucher, and Peter Baker.

NEW QUESTION # 197
To improve supplier innovations, a firm plans to conduct supply market research, identify emerging technologies, and analyze the capabilities of current and potential suppliers. Which of the following would be the MOST effective way to accomplish this goal?

A. Redesign the firm's supplier scorecards
B. Form a center of excellence
C. Reorganize the research and development department
D. Conduct business review meetings

Answer: B

NEW QUESTION # 198
......

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Evan King Evan King

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Exam CORe Price | Efficient CORe: Supply Management Core Exam 100% Pass

ISM Supply Management Core Exam Sample Questions (Q193-Q198):

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ISM Supply Management Core Exam Sample Questions (Q193-Q198):

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