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ISM Exam INTE Topic 2 Question 13 Discussion

Actual exam question for ISM's INTE exam
Question #: 13
Topic #: 2
[All INTE Questions]

A supply manager is analyzing potential costs associated with the raw materials needed for a new product launch. Tooling costs are known, but the range of forecasts for future sales---and therefore demand for materials-varies widely. Given these circumstances, the supply manager should consider using which of the following?

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Suggested Answer: B

A decision tree is an effective tool for evaluating potential costs and benefits under conditions of uncertainty, such as varying forecasts for future sales. It allows the supply manager to visually map out different decision paths and their associated costs, probabilities, and outcomes. This helps in comparing different scenarios and making informed decisions about the raw materials needed for a new product launch. Decision trees are particularly useful in situations with multiple possible outcomes and complex decisions. Reference:

* Clemen, R. T., & Reilly, T. (2013). Making Hard Decisions with DecisionTools. Cengage Learning.

* Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.


by Kenneth at Sep 15, 2024, 04:24 AM

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Roslyn
27 days ago
B) Decision tree is the way to go, no doubt. Gotta love those branching diagrams, am I right?
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Nana
28 days ago
Haha, D) Critical path? What is this, a construction project? I'm going with B) Decision tree, keep it simple.
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Tamra
1 months ago
A) Data mining could be useful, but I think B) Decision tree is more tailored for this situation. Helps visualize the options.
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Tenesha
16 days ago
C) Analysis of variance could also be helpful in understanding the variability in sales forecasts.
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Selma
26 days ago
A) Data mining might provide some insights too, but Decision tree seems more fitting.
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Rosita
28 days ago
B) Decision tree is a good choice. It can help map out different scenarios.
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Aliza
1 months ago
I think data mining could also be useful in this situation to identify patterns in sales data that could help make more accurate forecasts.
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Goldie
2 months ago
I'd go with C) Analysis of variance. Gotta crunch those numbers and find the real deal, you know?
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Raymon
2 months ago
B) Decision tree seems like the way to go here. It can help the supply manager navigate the uncertainty and identify the best path forward.
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William
30 days ago
C) Analysis of variance might also be helpful in understanding how different factors impact sales and material demand.
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Oren
1 months ago
B) Decision tree is definitely a good option to consider, as it can help visualize different possible outcomes and their probabilities.
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Destiny
1 months ago
A) Data mining could also be useful in identifying patterns and trends in sales data that could help make more accurate forecasts.
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Leslee
2 months ago
I agree with Edelmira. A decision tree can help analyze different scenarios based on the range of forecasts for future sales.
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Edelmira
2 months ago
I think the supply manager should consider using a decision tree.
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