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NEW QUESTION # 20
A US-based manufacturing firm receives a quoted price for an item from an offshore supplier of $.40 each (in US dollars), delivered duty paid to its US plant per Incoterms® 2020 rules, in minimum quantities of 20,000 units. The buying organization uses 80,000 units per year, and the carrying cost is 25%. The item price is fixed for one year. What are the total costs of purchasing annual requirements from this supplier?
Answer: C
Explanation:
* Given Data:
* Unit price: $0.40
* Annual usage: 80,000 units
* Carrying cost: 25%
* Minimum order quantity: 20,000 units
* Total Purchase Cost:
* Unit price multiplied by annual usage: $0.40 * 80,000 = $32,000
* Additional Costs:
* As the item price is fixed and includes delivery (DDP Incoterms® 2020), there are no additional duties or transportation costs.
* Carrying Cost Calculation:
* For the minimum order quantity, the carrying cost is not a factor because the question specifies a
* fixed price per unit delivered.
* Conclusion: The total cost of purchasing 80,000 units per year at $0.40 each is $32,000.
References
* Incoterms® 2020 by International Chamber of Commerce (ICC).
* Supply Chain Management: Strategy, Planning, and Operation by Sunil Chopra.
* The Handbook of Logistics and Distribution Management by Alan Rushton, Phil Croucher, and Peter Baker.
NEW QUESTION # 21
The ability to explain how and why decisions are made in support of business plans is important because it allows a supply manager to
Answer: A
Explanation:
The ability to explain how and why decisions are made in support of business plans is important because it allows a supply manager to influence internal stakeholders. By clearly communicating the rationale behind decisions, supply managers can gain buy-in and support from other departments, ensuring alignment and cooperation. This influence is crucial for the successful implementation of supply chain strategies and achieving organizational goals.
References
* ISM (Institute for Supply Management). Effective Stakeholder Management.
* CIPS (Chartered Institute of Procurement & Supply). Communication Skills for Supply Chain Professionals.
NEW QUESTION # 22
A supply manager receives negative feedback from internal stakeholders about several suppliers. However, the scorecards for these suppliers have been positive over the past few quarters, and any diminished performance is not reflected. Which of the following MOST likely explains this situation?
Answer: D
Explanation:
* Review Stakeholder Feedback: Understanding the nature of the negative feedback is the first step.
* Analyze Scorecard Metrics: If the scorecards have been positive, but the feedback is negative, it suggests a misalignment.
* Identify Changes in Requirements: Stakeholders' needs and expectations might have evolved, and these changes may not be reflected in the current scorecard metrics.
* Adjust Metrics Accordingly: The scorecards should be updated to align with the new requirements to ensure they accurately reflect supplier performance.
References
* Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.
* van Weele, A. J. (2018). Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice. Cengage Learning.
NEW QUESTION # 23
A researcher wants to predict an individual's starting monthly salary based on the number of years of education the individual has received.
Based on the Excel output below, what is the predicted starting monthly salary for a person with 17 years of education?
Answer: A
NEW QUESTION # 24
Which of the following is the FIRST step in developing a negotiation plan?
Answer: B
Explanation:
The first step in developing a negotiation plan is to engage with the internal customer and other internal stakeholders to identify their needs and wants, as well as educate them on how supply management can add value in the negotiation process. Understanding internal requirements and gaining alignment with stakeholders is crucial before analyzing risks (Option B), reviewing logistics strategies (Option C), or identifying payment terms (Option D). This step ensures that the negotiation strategy is aligned with organizational objectives and stakeholder expectations.
References:
* Negotiation and Dispute Resolution in Supply Chain Management by Victor P. Olorunniwo
* Procurement and Supply Chain Management by Kenneth Lysons and Brian Farrington
NEW QUESTION # 25
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