ISM INTE Exam - Topic 5 Question 7 Discussion

Actual exam question for ISM's INTE exam

Question #: 7
Topic #: 5

[All INTE Questions]

Which of the following is the FIRST stage in the Retail Event Collaboration Process Overview (VICS CPFR Model)?

AExecution

BStrategy and planning

CAnalysis

DDemand and supply management

Show Suggested Answer

Suggested Answer: D

In the context of low-cost country sourcing and minimizing risk when importing goods, the selection of appropriate Incoterms 2020 rules is crucial.

DAP (Delivered at Place) is the most suitable Incoterm for a firm wanting to assume the least amount of risk. Under DAP, the seller is responsible for all costs and risks associated with delivering the goods to a specified destination, which includes transportation, export customs clearance, and any other logistical arrangements until the goods are made available for unloading at the buyer's location. This significantly reduces the buyer's risk as the seller handles most of the transportation and logistics.

Other Incoterms, such as:

CFR (Cost and Freight): The seller pays for the cost and freight to bring the goods to the port of destination. However, the risk is transferred to the buyer once the goods are loaded on the vessel.

CPT (Carriage Paid To): Similar to CFR, but can be used for any mode of transport. The seller covers transport costs to a specified destination, but the risk transfers to the buyer upon handing over the goods to the first carrier.

EXW (Ex Works): The buyer assumes all risks and costs from the seller's premises onward, making it the highest risk for the buyer.

Incoterms 2020 by the International Chamber of Commerce (ICC)

'A Guide to Incoterms 2020' by the International Trade Centre (ITC)

by Lawrence at Jul 05, 2024, 03:42 PM

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Javier

3 months ago

Yeah, Strategy and planning is the first step for sure!

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Troy

3 months ago

Wait, is it really Strategy and planning? That seems off.

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Soledad

4 months ago

No way, it's Analysis!

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Shonda

4 months ago

I thought it was Execution.

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Jesusita

4 months ago

It's definitely Strategy and planning!

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Lasandra

4 months ago

I keep mixing up the stages, but I think "Demand and supply management" comes later in the process. I hope I remember this correctly!

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Delsie

4 months ago

I practiced a question similar to this, and I think "Analysis" was mentioned as an early stage. But I can't recall if it was the very first.

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Sherell

5 months ago

I feel like "Execution" could be the first step, but that seems too advanced for the beginning of the process.

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Carri

5 months ago

I think the first stage might be "Strategy and planning," but I'm not entirely sure. I remember it being about setting the groundwork.

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Chanel

5 months ago

Ah, I remember this from class. The first stage is definitely "Strategy and planning". That sets the foundation for the rest of the CPFR process. I'm confident that's the correct answer.

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Queenie

5 months ago

Execution? No, that can't be right. The first stage has to be more about planning and preparation. I'm leaning towards B, "Strategy and planning".

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Eun

5 months ago

Okay, the question is asking about the first stage in the CPFR process. I'm pretty sure it's "Strategy and planning", but I'll double-check my notes to be sure.

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Lashon

5 months ago

Hmm, this looks like a tricky one. I'll need to think through the CPFR model stages carefully to figure out the right answer.

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Domitila

5 months ago

I'm a bit confused on this one. The CPFR model has a lot of stages, so I want to make sure I get the order right. I'll review my materials and try to eliminate the wrong answers.

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