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ISM INTE Exam - Topic 4 Question 40 Discussion

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?
B) Engage a warehouse provider near Plant A to hold safety stock
A) Expand Plant A's warehouse space so it can maintain higher safety stock levels
C) Procure additional safety stock at another plant and ship to Plant A
D) Contract with multiple suppliers to support Plant A's operations

ISM INTE Exam - Topic 4 Question 40 Discussion

Actual exam question for ISM's INTE exam
Question #: 40
Topic #: 4
[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?

Show Suggested Answer Hide 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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Dominque
1 day ago
B seems like the best option, easy access to safety stock.
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Herschel
6 days ago
Option D could spread the risk better, though.
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Melissia
12 days ago
Wait, can they really expand that fast? Seems risky.
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Franchesca
17 days ago
Not so sure about that, what if the warehouse gets full too?
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Marica
22 days ago
Totally agree, having a nearby warehouse is key!
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Ashlyn
27 days ago
I think option B makes the most sense.
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Ora
1 month ago
I'm a bit confused about whether procuring safety stock from another plant would really solve the issue if Plant A's demand is so high.
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Tamekia
1 month ago
I practiced a similar question where we had to consider logistics and supply chain risks, and I feel like contracting with multiple suppliers might spread the risk better.
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Earlean
1 month ago
I think engaging a warehouse provider could be a good idea since it allows for flexibility without the need for a big investment right now.
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Derrick
3 months 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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