Pass the ISM CPSM CORE Questions and answers with CertsForce

Review Stakeholder Feedback: Understanding the nature of the negative feedback is the first step.

Analyze Scorecard Metrics: If the scorecards have been positive, but the feedback is negative, it suggests a misalignment.

Identify Changes in Requirements: Stakeholders' needs and expectations might have evolved, and these changes may not be reflected in the current scorecard metrics.

Adjust Metrics Accordingly: The scorecards should be updated to align with the new requirements to ensure they accurately reflect supplier performance.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.

van Weele, A. J. (2018). Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice. Cengage Learning.

To reduce travel costs, expanding the use of video conferencing as an alternative to travel is the most effective solution. Video conferencing can significantly cut down on the need for physical travel, allowing for virtual meetings and collaboration. This approach not only reduces travel expenses but also saves time and increases productivity by enabling more frequent and flexible communication without the need for extensive travel. References:

"Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl

Articles on cost management and technology adoption in supply chain management from the Journal of Business Logistics

Initial Cost Calculation: Initially, the product’s cost includes labor ($10), overhead ($12.50), and materials ($14). Thus, the total cost is $36.50 per unit.

Cost Reduction: Supply management reduces the cost of materials from $14 to $12, decreasing the total cost per unit to $34.50.

Contribution to Profit: The reduction in cost directly translates to an increase in profit per unit. The cost reduction is $2 per unit ($14 - $12).

Profit Calculation: As the selling price remains $36.50, the new profit per unit after cost reduction is the selling price minus the new total cost ($36.50 - $34.50), which results in an increased profit of $2 per unit.

References

ISM Glossary of Key Supply Management Terms

CIPS Cost Management Tools and Techniques