ISM INTE Exam - Topic 1 Question 21 Discussion

Actual exam question for ISM's INTE exam

Question #: 21
Topic #: 1

[All INTE Questions]

FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asi

a. The equipment is to be installed in a new auditorium that FGH is constructing. Failure to complete the project in time for its scheduled opening will subject FGH to penalties. FGH receives notice from the supplier that the equipment is packaged and ready to ship as planned via ocean freight but that an impending storm may cause delays. FGH needs to stay within budget. In this situation, which of following is the BEST course of action for FGH to take?

AWait until the storm's path can be predicted more accurately

BEvaluate options for a multimodal shipment

CArrange for immediate air freight of the equipment

DUse ocean freight after the storm subsides

Show Suggested Answer

Suggested Answer: D

An oligopoly is a market structure where a few sellers dominate the market and many buyers ex-ist. In such a market, prices and output levels are often controlled by the leading firms or through collusion, such as forming a cartel. These firms hold significant market power, which allows them to influence prices and other market factors. Oligopolies are common in industries where high en-try barriers exist, such as telecommunications, airlines, and oil and gas. Reference:

* Perloff, J. M. (2016). Microeconomics: Theory and Applications with Calculus. Pearson.

* Mankiw, N. G. (2014). Principles of Microeconomics. Cengage Learning.

by Avery at Jan 25, 2025, 02:14 PM

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Gilma

3 months ago

Storms can delay shipments by days or weeks.

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Carissa

3 months ago

Ocean freight after the storm sounds risky.

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Merrilee

4 months ago

Air freight? Isn't that super expensive?

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Kris

4 months ago

Agree, waiting for the storm isn't smart.

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Cornell

4 months ago

I think option B is the best choice. Multimodal could save time.

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Miesha

4 months ago

I think I read that air freight is faster but more expensive. If they need to stay within budget, maybe they should look into multimodal options instead.

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Pedro

4 months ago

This situation reminds me of a practice question about supply chain disruptions. Waiting for the storm to pass seems risky, but I wonder if ocean freight after the storm is a viable option?

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Nakisha

5 months ago

I'm not sure if air freight is the best option since it could blow the budget. Maybe evaluating multimodal shipment could be a safer bet?

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Mollie

5 months ago

I remember discussing the importance of timely delivery in class, so I think FGH should consider air freight to avoid penalties.

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Casandra

5 months ago

This is a tough call. I'll need to really analyze the pros and cons of each choice to determine the best course of action for FGH.

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Micah

5 months ago

The information about potential penalties for late delivery is a key factor. I think I'll focus on options that minimize the risk of delays, even if they cost more.

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Lindsey

5 months ago

Waiting until the storm's path is more clear could be risky if the project has a tight deadline. I'd be inclined to look at the air freight option to ensure on-time delivery.

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Gilma

5 months ago

Hmm, the budget constraint is really important here. I'm leaning towards evaluating the multimodal options to see if we can find a cost-effective solution.

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Shaun

5 months ago

This seems like a tricky situation. I'll need to carefully weigh the options and their potential consequences.

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Rolande

10 months ago

Wait, the equipment is coming from Asia and they're building a project in Italy? Talk about a global supply chain! I guess when you need specialized sound gear, you gotta do what you gotta do. Just hope they don't get hit with any 'sound' delays!

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Brinda

10 months ago

Waiting until the storm's path is more accurate could be risky, especially with the tight deadline. And using ocean freight after the storm might put us dangerously close to the opening date. I think the air freight is the safest bet, even if it's a bit pricier.

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Bettye

8 months ago

True, but the penalties for missing the deadline could end up costing us more in the long run.

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Ronnie

8 months ago

But air freight is more expensive, we need to consider the budget constraints.

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Keneth

8 months ago

I agree, air freight is the best option to ensure the equipment arrives on time.

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Cathern

10 months ago

Hmm, the budget is a factor here. Arranging for immediate air freight might be the quickest solution, but it's also likely to be the most expensive. I'd lean towards evaluating the multimodal options to see if we can find a balance between speed and cost.

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Vanna

9 months ago

Waiting until the storm's path can be predicted more accurately might be risky considering the penalties for not completing the project on time.

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Aileen

9 months ago

Using ocean freight after the storm subsides could be a good option to stay within budget.

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Sherly

9 months ago

I agree, we need to find a balance between speed and cost.

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Royce

9 months ago

Using ocean freight after the storm subsides could still be risky. Air freight might be the safest option.

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Noemi

9 months ago

Waiting for the storm's path to be predicted accurately might take too long. We need to act quickly.

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Darell

10 months ago

I agree, we need to consider both speed and cost. Multimodal shipment could be a good compromise.

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Stephaine

11 months ago

I agree with Amira. Air freight may be more expensive, but it's the safest option to ensure we meet the deadline.

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Amira

11 months ago

I disagree, we can't risk the penalties. We should arrange for immediate air freight of the equipment.

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Luke

11 months ago

The penalties for not completing the project on time are a major concern, so I think the best option is to go with the air freight. It's the fastest way to get the equipment to the site and avoid those penalties.

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