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ISM Supply Management Core Exam Sample Questions (Q37-Q42):

NEW QUESTION # 37
Which of the following options is an example of revenue?

A. $20,000 received as a down payment from a customer when they placed their order
B. An order for $3,000 received from a customer
C. $10,000 received from a customer for goods purchased a month ago
D. $300 received from a customer when they purchased and received an item

Answer: D

NEW QUESTION # 38
A supply manager for XYZ, Inc. visits a manufacturer's plant and research division for a general inspection and product review. The supply manager is required to sign in at the registration desk and must acknowledge acceptance of the standard terms of visiting. After the visit, which includes very encouraging discussions, the supply manager returns to XYZ with a sample of a new product-an expensive item of complex design with innovative features. The supply manager must take specific precautions to protect the sample because

A. the plant sign-in may have established non-disclosure requirements
B. damage to it may result in a charge for repair
C. the Truth-in-Lending Law requirements apply
D. evaluation of the sample might consume company resources

Answer: A

Explanation:
When a supply manager visits a manufacturer's plant and signs in at the registration desk, acknowledging standard terms of visiting, there may be non-disclosure requirements involved. Specific precautions are necessary to protect the sample:
* Truth-in-Lending Law requirements: Not relevant in this context as it pertains to lending and credit.
* Evaluation of the sample might consume company resources: While true, it is not the primary concern regarding the sample's protection.
* The plant sign-in may have established non-disclosure requirements: The most critical concern as violating non-disclosure agreements can have legal and competitive implications.
* Damage to it may result in a charge for repair: Important but secondary to confidentiality concerns.
Therefore, the supply manager must take specific precautions because the plant sign-in may have established non-disclosure requirements.
References:
* Legal considerations in supply chain management.
* Non-disclosure agreements and their implications in business visits.

NEW QUESTION # 39
RST, Inc. has been purchasing custom parts from Supplier X for a number of years. RST wishes to exit from its relationship with Supplier X and switch to another supplier. In this situation, which of the following is the BEST course of action for RST to take?

A. Wait until demand is lower to exit from Supplier X
B. Stop purchasing from Supplier X Immediately
C. Purchase items from a new supplier while continuing to buy from Supplier X
D. Require that a new supplier provide sample items prior to purchasing from them

Answer: C

NEW QUESTION # 40
A local restaurant owner decides to poll individuals randomly regarding how much they would be willing to spend on a romantic dinner for two. The owner takes a preliminary sample of 32 people and finds that the average amount those surveyed were willing to pay is $35 with a standard deviation of $10. The owner is not satisfied, however, because the owner wants to be 95% sure that the mean of the new sample falls within $2 of the true mean. What is the minimum number of people the owner should interview? Note that z=1.96 for a 95% confidence interval.

A. 0
B. 1
C. 2
D. 3

Answer: B

NEW QUESTION # 41
With which group of suppliers is It MOST important to conduct regular performance reviews?

A. Standard
B. Commodity
C. Key
D. Strategic

Answer: D

NEW QUESTION # 42
......

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