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Supply Management Core Exam

Last Update Jun 20, 2024
Total Questions : 180

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Supply Management Core Exam Questions and Answers

Questions 1

\NXY, Inc. is a manufacturer of metal castings. The firm contracts with Supplier Y to help meet WXY's supplier diversity initiative. Initially, Supplier Y has no issues meeting just-in-time scheduling and quality goals. However, after several months, the engineering lab finds inconsistent metallurgy and dimensional tolerance issues with Supplier Y’s components. The firm's production manager is willing to assist Supplier Y. Given this situation, which of the following courses of action should WXY's supply manager take?



Request that WXY's senior management hold a conference call with Supplier Y and inform it that the quality issues need to be resolved immediately


Replace Supplier Y, as trying to improve its performance will likely be a waste of time and resources


Assign specialists in lean manufacturing from WXY to develop Supplier Y into a lean manufacturing organization


Assign a Six Sigma black belt from WXY to help Supplier Y find the root cause of the problems and institute procedures to improve quality

Questions 2

A chief executive officer (CEO) asks a supply manager to prepare a statement of work for a consultant to perform audit services. The consultant occasionally does other non-audit work for the company. In this situation, which of the following is the BEST course of action for the supply manager to take?



Recommend giving a presentation to the board of directors on the category strategy for consulting and professional services


Explain to the CEO the conflict of interest in contracting with an existing consultant as an auditor, and recommend alternative solutions


Prioritize execution of the statement of work, as it has likely been mandated by the board of directors


Review professional service rates for the audit services and verify they are competitive prior to executing the statement of work

Questions 3

A manufacturing company purchases a certain component in quantities of 10,000 units per truckload. The company uses 2,000,000 units annually. The firm's supply manager identifies two possible suppliers of the component, both of which meet service and quality requirements.

Supplier A offers the component at $.69 per unit and charges $2000 to ship one truckload. Supplier B offers the component at $.71 per unit and charges $1500 to ship one truckload. Given this situation, which of the following will be MOST useful to the supply manager in deciding between the two suppliers?



Landed price


Value analysis


Economic order quantity


Cost/price analysis