INTE exam questions

1. Question 1 Supply Chain Strategy.

   Single answer

   A graph of a firm’s inventory replenishment system reveals the following:

   Which of the following is TRUE’

   

   • A

     The order cycle is two and a half days.

   • B

     The average inventory is 1,850 units.

   • C

     There is a fixed order quantity of 500 units.

   • D

     There is near instantaneous replenishment.

   Reveal answer

   Correct answer

   • D

     There is near instantaneous replenishment.

   Explanation

   The graph shows inventory levels being replenished back to the maximum level immediately after reaching zero, indicating near-instantaneous replenishment. This is characteristic of a system where the lead time for orders is very short or negligible, allowing the firm to maintain optimal inventory levels without significant delay. This approach minimizes stockouts and ensures a con-tinuous supply of inventory. Reference:
   •Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.
   •Silver, E. A., Pyke, D. F., & Thomas, D. J. (2016). Inventory and Production Management in Supply Chains. CRC Press.

2. Question 2 Supply Chain Strategy.

   Single answer

   When identifying complex market conditions affecting product or service demand factors, which of the following methods is typically MOST useful?

   • A

     Time series analysis

   • B

     Trend projections

   • C

     Moving averages

   • D

     Causal modeling

   Reveal answer

   Correct answer

   • D

     Causal modeling

   Explanation

   Causal modeling is typically the most useful method for identifying complex market conditions affecting product or service demand factors. This method examines the relationships between variables, allowing businesses to understand how different factors influence demand. It provides deeper insights into cause-and-effect relationships than methods like time series analysis or moving averages. Advanced forecasting techniques in supply chain management.

3. Question 3 Supply Chain Strategy.

   Single answer

   A retailer of high-value consumer electronics experiences a significant increase in theft within its forward and reverse logistics operations, both of which are subcontracted to third parties. Which of the following is the FIRST course of action the retailer should undertake in order to mitigate loss within the subcontractors' chain of custody?

   • A

     Redesign product packaging to add tamper proof capabilities

   • B

     Invest in a Transportation Management System in order to track the movement of products in real time

   • C

     Invest in radio-frequency identification (RFID) technology, in order to track inventory within the entire supply chain

   • D

     Assess internal process flow diagrams and those of the subcontractors to identify areas where risk of loss can occur

   Reveal answer

   Correct answer

   • D

     Assess internal process flow diagrams and those of the subcontractors to identify areas where risk of loss can occur

   Explanation

   The first course of action should be to assess internal process flow diagrams and those of the subcontractors to identify areas where the risk of loss can occur. Understanding the processes helps pinpoint vulnerabilities and implement targeted security measures. This approach ensures that the root causes of theft are addressed before investing in technology solutions. Risk management and loss prevention strategies in logistics.

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5. Question 4 Supply Chain Strategy.

   Single answer

   Which of the following categories is regarded as low risk and low value?

   • A

     Strategic

   • B

     Leverage

   • C

     Routine

   • D

     Bottleneck

   Reveal answer

   Correct answer

   • C

     Routine

   Explanation

   Routine categories are regarded as low risk and low value. These items are typically standardized and widely available, requiring minimal management effort. They often include office supplies or basic maintenance items. This classification allows firms to focus resources on more critical areas. Kraljic’s purchasing portfolio model.

6. Question 5 Supply Chain Strategy.

   Single answer

   A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:
   MonthJanFebMarAprMayJunJulAug
   Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000
   Production20,00020,00020,00020,00020,00020,00020,00020,000
   The supply management department learns that one of its retailers is planning a promotional event on August 1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of January, and maximum inventory holding is 15,000 units.
   How many units per month should production increase in order to meet the requirements of its retailer and minimize overall inventory levels?

   • A

     2,000

   • B

     2,500

   • C

     14,000

   • D

     2,715

   Reveal answer

   Correct answer

   • A

     2,000

   Explanation

   To meet the additional requirement of 19,000 units for the promotional event, production should increase by 2,000 units per month from January to August. This increase ensures that the necessary inventory is built up gradually, minimizing excess stock and adhering to maximum inventory limits. Level production strategy and inventory management.

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