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ISM INTE Practice Test Questions Answers

Exam Code: INTE (Updated 167 Q&As with Explanation)
Exam Name: Supply Management Integration
Last Update: 18-Sep-2025
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Questions Include:

  • Single Choice: 167 Q&A's

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    Total Questions: 312
    Updated: 18-Sep-2025

    INTE Questions and Answers

    Question # 1

    A firm completes its near level production, five-month demand plan for the next business planning cycle:

    Month 1Month 2Month 3Month 4Month 5

    Demand Forecast15,00020,00025,00025,00018,000

    Production Plan (Regular Time)20,00020,00020,00020,00018,000

    Production Plan (Overtime)5,000

    Ending Inventory5,0005,000

    Average Inventory2,5005,0002,500

    Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5

    Hires7

    Layoffs2

    Actual Workforce Size132020202018

    Regular Time Hours Required2,0002,0002,0002,0001,800

    Overtime Hours Required500

    Costs

    Regular time cost per unit$15

    Overtime cost per unitS25

    Monthly inventory cost per unit$1

    Cost of hire$1,500

    Cost of layoffS400

    What is the cost of this demand plan?

    A.

    $1,605,000

    B.

    $180,800

    C.

    $1,606,300

    D.

    $1,616,300

    Question # 2

    A supply manager for a U.S. firm is tasked with negotiating domestic shipping terms. The terms must ensure that the supplier has liability for any damaged products and is responsible for filing any claims with the shipper. The terms must also allow the buying firm to pay the shipper directly for shipping costs. Which of the following will BEST accomplish this objective?

    A.

    FOB Origin, Freight Allowed

    B.

    FOB Origin, Freight Collect

    C.

    FOB Destination, Freight Collect

    D.

    FOB Destination, Freight Prepaid

    Question # 3

    GHI, Inc. is a U.S.-based company with an expanding product line. GHI widens its sourcing of components to global suppliers, including suppliers in countries which are not included in trading blocs or bilateral agreements with the United States. Compliance with which of the following will MOST likely reduce GHI's administrative burden of cargo inspections on materials imported from these sources?

    A.

    United Nations Convention on Contracts for the International Sale of Goods (CISG)

    B.

    Foreign Corrupt Practices Act (FCPA)

    C.

    Global Environmental Management Initiative (GEMI)

    D.

    Customs-Trade Partnership Against Terrorism (C-TPAT)

    Question # 4

    A supply manager is part of a ramp-up team for a new product line. The supply manager's role will include finding and evaluating new sources and obtaining commitments to support the volume projected by marketing. In recent campaigns, sales forecasts have been considerably higher than actual demand, and the supply manager wants to minimize the risk of such a situation happening again. Which of the following arguments made by the supply manager will MOST likely influence the team to re-examine product launch expectations?

    A.

    "Supplier quality problems could mean the company misses the critical time-to-market window."

    B.

    "The company may experience involuntary down time if suppliers cannot keep up with production needs."

    C.

    "Cost overruns on unfamiliar materials might cause suppliers to raise prices. ’

    D.

    "An overly optimistic forecast may result in costly excess inventory and obligations."

    Question # 5

    A well-established retailer of consumer goods has earned a reputation for providing high quality merchandise at competitive prices. In recent years, however, the retailer has experienced a steady decline in sales within its stores. Which of the following is the BEST course of action for the retailer to take?

    A.

    Perform an industry benchmark analysis to better gauge performance against that of similar retailers within the marketplace

    B.

    Invest in promotional offerings in order to boost sales

    C.

    Implement revisions to its sales forecasting methodology with the goal of improving inventory turns

    D.

    Conduct an economic and market analysis to better understand trends occurring within the industry

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