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ISM CORE Questions Answers

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Question 84

A firm’s supply manager is asked by the engineering department to replace a chemical used in a majority of products made by the firm. The current chemical is Imported and has components that are highly regulated. Engineering wants to replace it with a chemical that uses non-hazardous domestic materials. This chemical would still have to be reported and customers would have to be notified of the change. Initial tests indicate that the new chemical is as effective as the old one. In this situation, which of the following should be the FIRST step taken by the supply manager?

Options:

A.

Check if the proposed supplier is ISO 14000 certified

B.

Update the project folder and timeline for implementation

C.

Perform a total cost analysis of the recommended new formula

D.

Notify all customers of the proposed change

Question 85

A supply manager Is conducting financial analyses of bidders. The supply manager wants to select the supplier that is the most efficient in its use of assets. Based on the following information, which supplier should the supply manager choose?

Options:

A.

Supplier D:Netincome=50, Assets = 20

B.

Supplier A:Netincome=100,Assets=100

C.

Supplier B:Netincome=200,Assets=100

D.

Supplier C:Netincome=200,Assets=400

Question 86

A machine that costs $200,000 is expected to realize an annual savings of $35,000. What is the simple ROI for this piece of equipment?

Options:

A.

57.5%

B.

31.5%

C.

20.0%

D.

17.5%

Question 87

XYZ, Inc. is negotiating with Supplier DEF for materials needed in manufacturing. The negotiations are moving slowly, primarily due to delays and postponements by the supplier. DEF has been the primary source for the material under negotiation, and while there are other potential sources, lead times would not make it feasible for XYZ to seek an alternative on such short notice. Which of the following tactics is DEF MOST likely employing?

Options:

A.

Missing person

B.

Red herring

C.

Power position

D.

False offer

Page: 21 / 23
Exam Code: CORE
Exam Name: Supply Management Core Exam
Last Update: Dec 23, 2024
Questions: 312
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