ISM Exam INTE Topic 3 Question 20 Discussion

Actual exam question for ISM's INTE exam

Question #: 20
Topic #: 3

[All INTE Questions]

A company develops long range material forecasts, analyzes industry trends, determines commodities for value analysis, and assesses supplier capabilities to assure continual economic supply of goods and services. This company is engaged in

Asupply chain mapping

Bmarket intelligence

Cearly supplier involvement

Dinventory control

Show Suggested Answer

Suggested Answer: C

Parts that were used for maintenance of equipment sold in the previous year but cannot be used on current equipment are best described as obsolete. Obsolete inventory refers to items that are no longer usable or saleable due to advancements in technology or changes in market demand. These parts should be identified and removed from active inventory to free up space and reduce carrying costs. Reference:

* Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.

* Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.

by Ronny at Jan 12, 2025, 11:49 AM

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Fernanda

2 days ago

If this company's forecasts are as long-range as the material they're procuring, they must be using a crystal ball or a time machine!

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Kathrine

6 days ago

Haha, inventory control? Really? Option D is just way off the mark. This company is clearly focusing on strategic supply chain management, not just inventory.

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