ISM INTE Supply Management Integration Online Training
ISM INTE Online Training
The questions for INTE were last updated at Jul 18,2025.
- Exam Code: INTE
- Exam Name: Supply Management Integration
- Certification Provider: ISM
- Latest update: Jul 18,2025
XYZ, Inc. is a manufacturer and distributor of fishing gear. XYZ relies on poorly-executed forecasts from its retail partners, which leads to exaggerated demand. This in turn leads to XYZ experiencing increased inventory, material handling concerns, and difficulties managing its accounts payable.
Which of the following BEST describes what is occurring in this situation?
- A . Bullwhip effect
- B . Speculative buying
- C . Adaptive smoothing
- D . Backflush
A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?
- A . Vendor-managed inventory
- B . Collaborative planning, forecasting and replenishment
- C . Sales and operations planning
- D . Enterprise resource planning
A company would like to reduce its inventory. The firm’s investment in inventory represents 12% of the company’s $11 million total assets. The inventory carrying cost is 20%. An inventory reduction of $1 million is considered a feasible goal.
What impact would meeting this goal have on profit?
- A . $240,000
- B . $200,000
- C . $120,000
- D . $220,000
A supply manager negotiates a volume discount with a key supplier. The supplier will provide a discount on screws, bolts, and nuts, based on the quantity indicated on the purchase order (PO).
Which of the following would be the BEST way for the buying firm to maximize the benefits of this discount?
- A . Raise the reorder point on these items so that the firm can take the advantage of the volume discount arrangement
- B . Communicate the volume discount arrangement to the engineering department so that the firm can consume these items in greater quantities
- C . Set up the fixed order quantity on these items to ensure that each purchase order issued will meet the required quantity for the volume discount
- D . Lower the reorder point on these items so that the firm can take the advantage of the volume discount arrangement
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 . 137 units
- B . 130 units
- C . 53 units
- D . 128 units
A manufacturer is concerned that excess packaging materials used for a product will send the wrong message to consumers who may have selected the product based on its sustainable design.
How can supply management positively impact this situation?
- A . Verify that recyclable packaging materials are properly coded for sorting
- B . Work with product development to ensure sustainable packaging is developed
- C . Include a notice with the product explaining that the packaging is recyclable
- D . Increase the amount of shrink-wrap packaging
A manufacturer must work to reduce cost of goods sold (COGS) to achieve profit objectives and remain competitive in a tight market. The manufacturer has long standing relationships with its main suppliers and a strong supply management department that conducts periodic reviews with the suppliers. Nevertheless, the manufacturer is not hitting targets.
Which of the following is the BEST course of action for supply management to undertake in order to initiate improvements?
- A . Continue to operate as usual, as manufacturing and operations must focus on labor cost reduction to best impact COGS
- B . Conduct a workshop with suppliers and internal stakeholders, focusing on sustainable improvements and goal alignment
- C . Demand each supplier provide price concessions regardless of contract terms, as it is a tight market
- D . Retender the contracts representing the main cost drivers in order to maximize COGS reduction
An organization’s capital expenditure policies are MOST closely aligned with which of the following types of assets?
- A . Deferred
- B . Intangible
- C . Current
- D . Fixed
A company saves packaging from incoming shipments and utilizes the cartons to sort parts and pad outgoing pallets.
This can BEST be described as
- A . recycling
- B . reduction
- C . reclamation
- D . reuse
A company finds that delays and cost overruns are creating problems in its service contracts.
To improve this situation, which of the following should the firm do FIRST?
- A . Renegotiate pricing with current service suppliers
- B . Convert cost reimbursable contracts into fixed prices
- C . Revise the company’s standard contract template for all of its services
- D . Establish progress milestones and monitoring for existing contracts
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