ISM Exam INTE Topic 1 Question 21 Discussion

Actual exam question for ISM's INTE exam

Question #: 21
Topic #: 1

[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?

AWait until the storm's path can be predicted more accurately

BEvaluate options for a multimodal shipment

CArrange for immediate air freight of the equipment

DUse ocean freight after the storm subsides

Show Suggested Answer

Suggested Answer: D

An oligopoly is a market structure where a few sellers dominate the market and many buyers ex-ist. In such a market, prices and output levels are often controlled by the leading firms or through collusion, such as forming a cartel. These firms hold significant market power, which allows them to influence prices and other market factors. Oligopolies are common in industries where high en-try barriers exist, such as telecommunications, airlines, and oil and gas. Reference:

* Perloff, J. M. (2016). Microeconomics: Theory and Applications with Calculus. Pearson.

* Mankiw, N. G. (2014). Principles of Microeconomics. Cengage Learning.

by Avery at Jan 25, 2025, 02:14 PM

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Rolande

2 months ago

Wait, the equipment is coming from Asia and they're building a project in Italy? Talk about a global supply chain! I guess when you need specialized sound gear, you gotta do what you gotta do. Just hope they don't get hit with any 'sound' delays!

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Brinda

2 months ago

Waiting until the storm's path is more accurate could be risky, especially with the tight deadline. And using ocean freight after the storm might put us dangerously close to the opening date. I think the air freight is the safest bet, even if it's a bit pricier.

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Bettye

1 days ago

True, but the penalties for missing the deadline could end up costing us more in the long run.

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Ronnie

2 days ago

But air freight is more expensive, we need to consider the budget constraints.

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Keneth

4 days ago

I agree, air freight is the best option to ensure the equipment arrives on time.

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Cathern

2 months ago

Hmm, the budget is a factor here. Arranging for immediate air freight might be the quickest solution, but it's also likely to be the most expensive. I'd lean towards evaluating the multimodal options to see if we can find a balance between speed and cost.

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Vanna

12 days ago

Waiting until the storm's path can be predicted more accurately might be risky considering the penalties for not completing the project on time.

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Aileen

18 days ago

Using ocean freight after the storm subsides could be a good option to stay within budget.

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Sherly

24 days ago

I agree, we need to find a balance between speed and cost.

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Royce

26 days ago

Using ocean freight after the storm subsides could still be risky. Air freight might be the safest option.

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Noemi

29 days ago

Waiting for the storm's path to be predicted accurately might take too long. We need to act quickly.

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Darell

1 months ago

I agree, we need to consider both speed and cost. Multimodal shipment could be a good compromise.

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Stephaine

3 months ago

I agree with Amira. Air freight may be more expensive, but it's the safest option to ensure we meet the deadline.

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Amira

3 months ago

I disagree, we can't risk the penalties. We should arrange for immediate air freight of the equipment.

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Luke

3 months ago

The penalties for not completing the project on time are a major concern, so I think the best option is to go with the air freight. It's the fastest way to get the equipment to the site and avoid those penalties.

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