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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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Corrinne
5 days ago
I prefer A. More control over stock levels.
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Rosendo
10 days ago
It reduces pressure on Plant A's space.
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Sylvia
15 days ago
Why B? Isn't it risky?
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Rosendo
20 days ago
I think option B is the best choice.
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Lina
26 days ago
Wait, can the supplier really expand in time? Sounds sketchy.
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Irving
1 month ago
D is smart, diversifying suppliers is key!
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Kris
1 month ago
C might be risky with shipping delays.
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Lenna
1 month ago
I disagree, A could work if they expand the warehouse.
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Dominque
2 months ago
B seems like the best option, easy access to safety stock.
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Herschel
2 months ago
Option D could spread the risk better, though.
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Melissia
2 months ago
Wait, can they really expand that fast? Seems risky.
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Franchesca
2 months ago
Not so sure about that, what if the warehouse gets full too?
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Marica
2 months ago
Totally agree, having a nearby warehouse is key!
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Ashlyn
2 months ago
I think option B makes the most sense.
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Ora
3 months 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
3 months 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
3 months 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
4 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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