Get a glimpse of the real INTE certification exam challenges with our free ISM INTE practice test questions.
Question 1
DFG Inc. has been experiencing declining sales in its consumer division. After analyzing its sales data, the company determines that racial and ethnic minorities are underrepresented as consumers of its products. DFG decides to focus on increasing its appeal to these groups. DFG's products are of excellent quality and value, and the firm believes that its sales are weak with this segment because of a lack of knowledge about DFG and its products.
Which of the following is the FIRST step that DFG should undertake?
Question 2
A company moves its warehouse operations to a new location. Soon after, the company experiences higher shipping costs and delays in meeting delivery dates. Which of the following is the MOST likely cause of these increased costs and delays?
Question 3
A company introduces a new product line. Although the line is selling well, profit margins are barely at the break-even point. In this situation, which of the following is MOST likely to improve profit margins'
Question 4
A manufacturing firm redesigns its premier product to benefit from material standardization. This will entail re-tooling its manufacturing facility. The firm conducts a cost analysis using net present value (NPV) and considers four options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations. The discount rate for NPV calculation is 10% per annum, and material costs are fixed for the next 3 years. The firm follows a three-year planning cycle and wishes to apply NPV over that time period to the calculations:
Option 1 Option 2 Option 3 Option 4
Re-tooling Costs $0 $500,000 $800,000 $950,000
Annual Material Costs $1,100,000 $900,000 $800,000 $750,000
NPV = r.i (l*r/
What is the 3-year NPV of the best option'
Question 5
A firm that manufactures residential doors and windows runs short of rubber molding used in production. The next delivery from the contracted supplier is due in two working days. To maintain production, the firm's supply manager purchases 100 feet of material from a local supplier. This type of purchase is known as
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