Free Practice ISM INTE Exam Questions 2025

A buyer is reviewing a quote for a shipment of electronic materials from Europe to Africa. The supplier offers a reasonable price for the materials and plans to deliver them using its regular shipping service. The terms are such that the buying company takes possession of the goods once they are loaded onto a boat in Europe. Which of the following information should be of GREATEST concern to the buyer?

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 organization purchases material from several countries. These materials are assembled into products and sold in several other countries. This firm's product specifications will MOST likely reference

How long after the delivery date must a freight claim on a motor carriage shipment be presented and filed with the carrier in the United States’ 

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 MonthJulAugSepOctNovDecJanFeb

Demand after February is expected to remain at 10,000 units per month for several months, then decrease

gradually. 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. The

production 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 total

business

•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total

business

•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total

business

Two of these companies—Supplier X and Supplier Y—are minority businesses.

Given this situation, DEF should contract with