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ISM INTE Exam Questions
- Topic 1: Supply Chain Strategy: This section deals with how to develop and implement material or service standardization programs and implement requirements planning to align supply management activities with organizational strategy.
- Topic 2: Sales and Operations Planning (SOP): This section covers sales and Operations Planning, Demand Planning, and Forecasting.
- Topic 3: Quality Management: This section covers understanding and applying quality management principles throughout the supply chain.
- Topic 4: Logistics and Materials Management: This section covers knowledge of transportation modes, warehousing, and inventory management practices.
- Topic 5: Project Management: This section covers applying project management principles to supply management activities.
Free ISM INTE Exam Actual Questions
Note: Premium Questions for INTE were last updated On Jun. 26, 2026 (see below)
FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asi
a. The equipment is to be installed in a new auditorium that FGH is constructing. Failure to complete the project in time for its scheduled opening will subject FGH to penalties. FGH receives notice from the supplier that the equipment is packaged and ready to ship as planned via ocean freight but that an impending storm may cause delays. FGH needs to stay within budget. In this situation, which of following is the BEST course of action for FGH to take?
Marine transportation is the best option for promoting international trade and transporting large quantities of products at a low cost. It allows for economies of scale, making it the most cost-effective mode for bulk shipments. Reference: Global trade studies frequently cite maritime shipping as a key enabler of international commerce due to its capacity and cost benefits.
In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement. Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?
Analyzing transportation modes, classification, and cost-influencing factors allows the supply manager to identify opportunities for cost savings beyond published rates. This approach leverages supply management skills to optimize logistics strategies, demonstrating value in cost reduction. Reference: Logistics management theories advocate for comprehensive cost analysis to enhance decision-making and operational efficiency.
In preparation for a new product launch, a company reviews the production capabilities of several regional plants in comparison with anticipated demand. Plant A is expected to have the highest demand, but consistent supply of parts is less reliable there than in other locations. The firm locates a supplier near the plant, which, although qualified, currently does not have enough space to store the large volume of finished parts Plant A will need for production. However, this supplier plans to expand.
To support plant operations during new product ramp-up, which of the following is MOST likely to be effective?
Engaging a warehouse provider near Plant A to hold safety stock is the most effective solution. This approach allows for immediate access to necessary inventory without straining Plant A's space, ensuring continuous production during ramp-up. It also mitigates risks associated with the supplier's current storage limitations. Reference: Inventory management and logistics strategies.
A manufacturing firm is preparing a materials requirement plan for the next six weeks. The information is as follows:
Master Production Schedule
Week 1 2 3 4 5 6
Item A 5 10 15 20 25 30
Other Relevant Information
Item Item's Parent Item's Lead Time Item's Lot Size Item's Current Inventory
A None 1 week LFL 20
B A 2 weeks 10 5
C B 3 weeks 20 5
How many levels does the product structure have in the bill of materials?
The bullwhip effect describes the phenomenon where order variability increases as it moves up the supply chain. In this case, XYZ Company's unpredictable order patterns cause Supplier A to maintain higher safety stock. This is due to demand fluctuations amplified by XYZ's overordering to compensate for stockouts, leading to inefficiencies and increased costs throughout the supply chain.
Which of the following refers to a procedure whereby data are collected and compared to requirements in order to make an acceptance decision?
Inspection is the procedure where data is collected and compared to requirements to make an acceptance decision. This process ensures that products meet specified quality standards before acceptance, playing a critical role in quality control and compliance.
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