ISM Updated INTE Exam Questions and Answers by layan

Highlighting the risks of excess inventory and financial obligations due to optimistic forecasts is a compelling argument. It addresses financial impacts and supply chain efficiency, which are critical for decision-making in product launches. By presenting potential negative outcomes, the supply manager can influence the team to adopt more realistic projections. This approach is backed by supply chain risk management literature that emphasizes forecasting accuracy and inventory control.

Using the exponential smoothing formula, Ft=Ft−1+α(At−1−Ft−1)F_t = F_{t-1} + \alpha (A_{t-1} - F_{t-1})Ft=Ft−1+α(At−1−Ft−1), where FtF_tFt is the forecast, α\alphaα is the smoothing constant (0.2), At−1A_{t-1}At−1 is actual demand (140), and Ft−1F_{t-1}Ft−1 is the previous forecast (125). Calculation: 125+0.2×(140−125)=128+2=130125 + 0.2 \times (140 - 125) = 128 + 2 = 130125+0.2×(140−125)=128+2=130. Reference: Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.

Working with engineering to assess the impact of each defect type on customers helps prioritize corrective actions effectively. Addressing the defect with the highest customer impact first ensures that resources are focused on the most critical issues, improving product quality and customer satisfaction.

The process described is Collaborative Planning, Forecasting and Replenishment (CPFR), which involves both the retailer and supplier working together to improve product availability and reduce costs associated with inventory, transportation, and logistics. References: CPFR is a widely adopted strategy in supply chain management to enhance collaboration and optimize the supply chain.