Free INTE Mock Exam – Practice Online Confidently

Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time. Which of the following should the buying firm do in this instance?

An ERP purchasing module indicates a gross requirement of 100 units for part number A123. There is an open purchase order for 55 units. The item master for this supplier shows an order lot size of 30 units each. In this situation, how many units of this part will the exception report indicate should be ordered7

A firm sells an average of 2,000 units of snacks from its existing stock while it waits for orders to be delivered. Demand during lead time varies in accordance with a normal distribution. The firm's supply manager prepares a presentation to explain the concept of customer service and safety stock levels using the following figure:What does the shaded area D (in red) represent?

BCD Manufacturing's products have very high velocity. Accordingly, the firm is redesigning its warehouse toaccommodate additionalimplement a system thatwill allow its products to be stored in flexible locations, due to the high demand of different SKUs. Thisstrategy should also allow the orgfeization to improve warehouse efficiency. In this situation, which of thefollowing types of storage strategies should BCD employ?

DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows MonthJulAugSepOctNovDecJanFebUnit Sales1001502006001,4002,2004,00010,000Demand after February is expected to remain at 10,000 units per month for several months, then decreasegradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.There are only three suppliers capable of providing the specialized component critical to this product. Theproduction capacities of these suppliers are as follows:•Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its totalbusiness•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its totalbusiness•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its totalbusinessTwo of these companies—Supplier X and Supplier Y—are minority businesses.Given this situation, DEF should contract with