ISM INTE Exam - Topic 4 Question 40 Discussion

Actual exam question for ISM's INTE exam

Question #: 40
Topic #: 4

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 Tommy at May 15, 2026, 02:51 AM

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Derrick

21 days ago

I remember we discussed the importance of having enough safety stock, but I'm not sure if expanding the warehouse is the best option.

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