A supply manager goes through the process of differentiating reports according to the degree of importance to the organization. This process is BEST defined as

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B) A corporate travel manager notices an increase in first class air bookings by company sales personnel. Although the company’s travel policy normally prohibits first class travel, the firm’s sales managers have approved a number of exceptions over the past six months. The travel manager is becoming concerned about meeting the annual savings target established by senior management. In this situation, which of the following is the BEST course of action for the travel manager?

Enable workflow within the company’s online booking tool to require a senior manager to approve non-coach bookings

Redistribute the company’s travel policy and highlight the mandate to travel coach regardless of business circumstance

Present a monthly travel dashboard to senior management highlighting the rise in percentage of first class exceptions

Distribute detailed traveler activity reports to sales managers to provide visibility into which travelers are flying first class


A supply manager is negotiating a contract with a supplier who will be supplying a critical product with multiple development and production milestones. Which of the following would be the MOST effective method for the supply manager to ensure that the product is completed and delivered according to schedule?

Require the supplier to submit progress reports that show the supplier’s progress against each milestone.

Negotiate a strong cancellation provision in case the supplier fails to meet the schedule.

Establish a solid annual work plan that lists the required tasks.

Develop a workable backup plan in the event the supplier fails to meet the schedule.


A supply manager sends a cancellation notice due to a material breach by the supplier. This is BEST described as:

Termination for cause.

Termination for inexcusable delay.

Termination for frustration of purpose.

Termination for convenience.


The supply management organization for XYZ, Inc. has been asked to review occupational safety regulations for possible liability, as this affects relationships with suppliers.

Which of the following is TRUE in this situation?

Supply management need only concentrate on XYZ’s behavior, as they cannot control that of the suppliers.

As suppliers are accountable for their own violations, no action on XYZ’s part is necessary.

The regulations will be a concern only if XYZ is headquartered in the U.S. or EU.

Compliance with the law clauses should be included in contracts for goods and services.


A service manager is reviewing the operational risks of communicating with field engineers on site. The manager determines the following:

  • The engineers’ cell phone reliability is 86%
  • The cellular network’s reliability is 98%
  • The service manager’s cell phone reliability is 98%

What is the reliability of the communications?






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