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ISM Supply Management Core Exam Sample Questions (Q121-Q126):

NEW QUESTION # 121
A luxury scarf manufacturer located in Europe selects a fine wool supplier in Australia. The manufacturer's supply manager wants to ensure timely monthly deliveries while keeping transportation costs reasonable.
Which of the following actions by the supply manager is MOST likely to meet the scarf company's needs?

A. Require the freight carriers to provide real-time tracking
B. Select a consistent Incoterms 2020 rule for all shipments
C. Include a routing guide within the service level agreement
D. Utilize a freight forwarder to schedule and track shipments

Answer: D

NEW QUESTION # 122
A large manufacturing firm has offices across the country. The company wants to obtain the best price and reduce administrative costs associated with procuring office supplies. Which of the following would be BEST suited to the firm's needs?

A. Blanket agreement
B. Manufacturing resource planning
C. Master purchasing agreement
D. Indefinite delivery contract

Answer: A

Explanation:
A blanket agreement is best suited to the firm's needs to obtain the best price and reduce administrative costs for procuring office supplies. A blanket agreement allows the company to negotiate a fixed price for supplies over a specified period and simplifies the procurement process by reducing the need for multiple purchase orders. This type of agreement can leverage the firm's total buying power to achieve cost savings and reduce the administrative burden associated with frequent individual purchases.
References:
* Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management.
* ISM (Institute for Supply Management). (2020). ISM Glossary of Key Supply Management Terms.

NEW QUESTION # 123
After thorough market research, a company discovers that there are three well-defined customer segments for a new product it plans to release. Customer segment A represents young professionals, who each have a willingness to pay (WTP) of $45. Customer segment B represents college students, who each have a WTP of $25. Customer segment C represents mid-career professionals, who each have a WTP of $100. What price should the company charge for its new product in order to maximize revenues? Assume that each customer segment has the same number of individual customers.

A. $25
B. $45
C. $70
D. $100

Answer: D

Explanation:

NEW QUESTION # 124
Which of the following explains external category market conditions by describing competitive factors within an industry?

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

Answer: B

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 # 125
A supply management department obtains executive support to adopt category management. Which of the following is a key step in establishing the categories to be managed?

A. Developing a category management governance structure
B. Conducting a Pareto analysis
C. Developing category-specific action plans
D. Conducting a spend and forecast analysis

Answer: D

NEW QUESTION # 126
......

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Latest ISM CORe Questions - The Fast Track To Get Exam Success

CORe Valid Exam Vce - Reliable CORe Practice Materials

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ISM Supply Management Core Exam Sample Questions (Q121-Q126):