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CORE Exam Dumps : Supply Management Core Exam

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Supply Management Core Exam Questions and Answers

Question 1

A company buys 200 metric tons of ethylene per month. The firm has a one-year agreement with Supplier X to buy the ethylene at $1000 per metric ton. After 3 months, the market price drops to $900 per metric ton, and the firm renegotiates the price to $890 per metric ton for the remaining contract term.

What savings should be reported?

Options:

A.

$264,000 cost reduction and $240,000 cost avoidance

B.

$18,000 cost reduction and $180,000 cost avoidance

C.

$24,000 cost reduction and $240,000 cost avoidance

D.

$198,000 cost reduction and $198,000 cost avoidance

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Question 2

An operations manager wants to replace the existing fleet of aging vehicles owned by the company. The operations manager presents the supply manager with a list denoting the quantity, makes and models currently in operation:

Quantity

Brand A - 4X4 SUVs15

Brand B - Midsize Cars5

Brand C - Compact Cars45

Which of the following is the BEST course of action for the supply manager to take?

Options:

A.

Request quotations for the listed quantities of vehicles, using generic specifications and performance requirements

B.

Request quotations for the listed makes and models of vehicles, with forecasted quantities to meet current and future needs

C.

Request quotations using generic specifications and performance requirements, with forecasted quantities to meet current and future needs

D.

Request quotations for the makes, models and quantities of vehicles specified on the list

Question 3

Which of the following is considered the HIGHEST level in a supply chain's strategic plan?

Options:

A.

Objective of the organization

B.

Commodity segmentation

C.

Supplier differentiation

D.

Acquisition planning