ISM INTE Exam - Topic 2 Question 34 Discussion

Actual exam question for ISM's INTE exam

Question #: 34
Topic #: 2

[All INTE Questions]

In preparation for a new product launch, a company reviews the production capabilities of several regional plants in comparison with anticipated demand. Plant A is expected to have the highest demand, but consistent supply of parts is less reliable there than in other locations. The firm locates a supplier near the plant, which, although qualified, currently does not have enough space to store the large volume of finished parts Plant A will need for production. However, this supplier plans to expand.

To support plant operations during new product ramp-up, which of the following is MOST likely to be effective?

AExpand Plant A's warehouse space so it can maintain higher safety stock levels

BEngage a warehouse provider near Plant A to hold safety stock

CProcure additional safety stock at another plant and ship to Plant A

DContract with multiple suppliers to support Plant A's operations

Show Suggested Answer

Suggested Answer: B

Engaging a warehouse provider near Plant A to hold safety stock is the most effective solution. This approach allows for immediate access to necessary inventory without straining Plant A's space, ensuring continuous production during ramp-up. It also mitigates risks associated with the supplier's current storage limitations. Reference: Inventory management and logistics strategies.

by Portia at Nov 23, 2025, 11:53 PM

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Salome

7 days ago

Totally agree, having a nearby warehouse is key!

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Herman

13 days ago

I think option B makes the most sense.

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Basilia

18 days ago

Procuring extra stock at another plant (C) seems like a logistical nightmare. B is the clear winner here.

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Gene

23 days ago

Haha, I bet the supplier's expansion plans are about as reliable as my New Year's resolutions. Option B is the way to go.

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Pearlene

28 days ago

D is an interesting option, but it might be overkill for this scenario. B looks like the most practical and cost-effective solution.

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Jovita

1 month ago

I agree with B. Expanding the plant's own warehouse space would be too costly and time-consuming for a ramp-up situation.

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Laticia

1 month ago

Option B seems like the best choice here. Outsourcing the storage to a nearby warehouse provider makes the most sense given the supplier's space constraints.

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Vallie

1 month ago

I practiced a similar question where we had to balance supply chain risks, and I feel like contracting multiple suppliers might spread the risk better.

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Salley

2 months ago

I think engaging a warehouse provider could be a smart move since it allows flexibility without the need for major investments right now.

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Kattie

2 months ago

Expanding Plant A's warehouse space seems like it could work, but that might take too long to implement for the new product launch. Engaging a nearby warehouse provider seems like the quickest solution.

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Terrilyn

2 months ago

I think I've got a good handle on this. The supplier's expansion plans make option B the best choice to ensure Plant A has the safety stock it needs.

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Bettye

2 months ago

I'm a bit confused by the wording of the question. Can we really say which option is "MOST likely to be effective"? There could be pros and cons to each approach.

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Janessa

3 months ago

I remember discussing the importance of safety stock in class, but I'm not sure if expanding the warehouse is the best option.

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Ashlyn

3 months ago

I'm a bit confused about whether procuring safety stock from another plant would actually solve the supply issue in time for the ramp-up.

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Chan

3 months ago

Okay, let's see. The key seems to be the supplier's expansion plans and the need to support Plant A during the new product launch. I'm leaning towards option B.

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