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ISM INTE Exam - Topic 3 Question 42 Discussion

FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asia. 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?
D) Use ocean freight after the storm subsides
A) Wait until the storm's path can be predicted more accurately
B) Evaluate options for a multimodal shipment
C) Arrange for immediate air freight of the equipment

ISM INTE Exam - Topic 3 Question 42 Discussion

Actual exam question for ISM's INTE exam
Question #: 42
Topic #: 3
[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?

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Suggested Answer: D

Marine transportation is the best option for promoting international trade and transporting large quantities of products at a low cost. It allows for economies of scale, making it the most cost-effective mode for bulk shipments. Reference: Global trade studies frequently cite maritime shipping as a key enabler of international commerce due to its capacity and cost benefits.


by Nelida at Jun 22, 2026, 03:39 AM

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Albina
1 day ago
Multimodal could save costs and time if planned right.
upvoted 0 times
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Ciara
6 days ago
Waiting for the storm seems risky, though.
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India
12 days ago
But isn’t air freight way more expensive?
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Murray
17 days ago
Definitely go for air freight! No time to waste.
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Iola
22 days ago
Air freight is usually faster than ocean freight.
upvoted 0 times
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Kathryn
27 days ago
I think using ocean freight after the storm might be too risky. I remember a practice question where we had to consider costs and timelines, and air freight seemed to be the best way to avoid penalties.
upvoted 0 times
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Luann
1 month ago
I’m uncertain about the best choice. Waiting for the storm to pass seems risky, but rushing with air freight could blow the budget. What if the storm delays ocean freight too?
upvoted 0 times
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Paola
1 month ago
I feel like we had a similar case study where we had to choose between waiting and finding alternative shipping methods. I’m leaning towards evaluating multimodal options, but I’m not entirely sure.
upvoted 0 times
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Jeanice
1 month ago
I remember discussing the importance of timely delivery in class, especially when penalties are involved. I think air freight might be the safest option here, but it could be expensive.
upvoted 0 times
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