ISM Supply Management Core : CORe valid dump

GHI, Inc. manufactures and sells high-end headphones. Each pair of headphones is packaged with a kit of customizable parts. GHI sources these customizable parts from a specialty supplier. Recently, GHI received a shipment of the parts from the supplier, and although the materials arrived on time, they were not bagged and labeled individually as the contract requires, but rather arrived in bulk.
GHI needs the parts as soon as possible to complete its holiday orders. Given this situation, which of the following is the BEST course of action for GHI's supply manager to take?

• A. Send GHI's quality team to the supplier's facility
• B. Return the materials as nonconforming items for replacement
• C. Have the parts properly packaged with the supplier's agreement to cover the costs
• D. Refuse to pay any invoice until the supplier corrects the mistake by repackaging the materials

A manufacturing company signs a cost-reimbursable contract with a new customer that needs a large volume of its product manufactured in a short period of time. The product is difficult and time consuming to fabricate.
The contract provides generous flexibility for cost but has severe consequences if the deadline is missed. To ensure the timely completion of the contract, the manufacturer plans to negotiate with a lower-tier supplier for a critical sub-component.
Given this situation, which of the following negotiation objectives is MOST closely aligned with the interests of the manufacturing firm?

• A. Achieving a 10% reduction in price
• B. Expediting fabrication and delivery of the sub-component
• C. Implementing enhanced quality inspections prior to shipment
• D. Providing a 5% discount for prompt payment of invoices

ABC, Inc. has a supply management department responsible for placing orders. In spite of this, a designer from ABC's engineering department places an order with Supplier X for several products.
When the shipment arrives, it is rejected by the receiving department, as they cannot verify the order with supply management. To avoid this situation, the designer should have

• A. notified the supervisor of the engineering department of the immediate need for the item
• B. delayed placing the order until after looking at comparable items from other suppliers
• C. coordinated product needs with supply management prior to order commitment
• D. requested supply management issue an "after the fact" purchase order

According to the Kraljic matrix, how should a product with high business impact and low supply market complexity be categorized?

• A. Noncritical
• B. Strategic
• C. Leverage
• D. Bottleneck

JKL, Inc. outsources its event services for large group training sessions and annual meetings. The contract requires the supplier to report program metrics, including cost savings. The savings method employed compares the hotel's initial bid to the final negotiated price. The first report shows significant hard savings on the average nightly rate for hotel rooms. JKL's category manager would like to claim the hard savings. Which of the following BEST describes why the finance department should deny this request?

• A. Unless there is a year-over-year reduction, the savings is cost containment.
• B. Savings from outsourcing are subject to a higher level of governance.
• C. Further data is required from the supplier to sufficiently support the savings.
• D. Unless there is a year-over-year reduction, the savings is cost avoidance.