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Question No: 1

MultipleChoice

BCD Manufacturing's products have very high velocity. Accordingly, the firm is redesigning its warehouse to accommodate additional implement a system that

will allow its products to be stored in flexible locations, due to the high demand of different SKUs. This strategy should also allow the orgfeization to improve warehouse efficiency. In this situation, which of the following types of storage strategies should BCD employ?

Options

AOverflow locations

BFixed item locations

CFloating locations

DPoint-of-use locations

Question No: 2

MultipleChoice

A company logistics manager is informed that, because of an emergency, part of the firm's ocean-going cargo had to be thrown overboard. The losses are to be split 50/50 between the shipper and the freight company. Which option best pertains MOST closely to this issue?

Options

AIncoterms 2020 rules

BMaritime law

CReverse logistics

DInternational law

Question No: 3

MultipleChoice

Reducing the number of items that perform the same or similar function is known as

Options

Avalue analysis

Bstandardization

Cvalue engineering

Dsimplification

Question No: 4

MultipleChoice

A supply manager negotiates a volume discount with a key supplier. The supplier will provide a discount on screws, bolts, and nuts, based on the quantity indicated on the purchase order (PO). Which of the following would be the BEST way for the buying firm to maximize the benefits of this discount?

Options

ARaise the reorder point on these items so that the firm can take the advantage of the volume discount arrangement

BCommunicate the volume discount arrangement to the engineering department so that the firm can consume these items in greater quantities

CSet up the fixed order quantity on these items to ensure that each purchase order issued will meet the required quantity for the volume discount

DLower the reorder point on these items so that the firm can take the advantage of the volume discount arrangement

Question No: 5

MultipleChoice

A manufacturer must work to reduce cost of goods sold (COGS) to achieve profit objectives and remain competitive in a tight market. The manufacturer has long standing relationships with its main suppliers and a strong supply management department that conducts periodic reviews with the suppliers. Nevertheless, the manufacturer is not hitting targets. Which of the following is the BEST course of action for supply management to undertake in order to initiate improvements?

Options

AContinue to operate as usual, as manufacturing and operations must focus on labor cost reduction to best impact COGS

BConduct a workshop with suppliers and internal stakeholders, focusing on sustainable improvements and goal alignment

CDemand each supplier provide price concessions regardless of contract terms, as it is a tight market

DRetender the contracts representing the main cost drivers in order to maximize COGS reduction

Free ISM INTE Exam Dumps June 2026