ISM Exam INTE Topic 1 Question 19 Discussion

Actual exam question for ISM's INTE exam

Question #: 19
Topic #: 1

[All INTE Questions]

A supply manager for a U.S. firm is tasked with negotiating domestic shipping terms. The terms must ensure that the supplier has liability for any damaged products and is responsible for filing any claims with the shipper. The terms must also allow the buying firm to pay the shipper directly for shipping costs. Which of the following will BEST accomplish this objective?

AFOB Origin, Freight Allowed

BFOB Origin, Freight Collect

CFOB Destination, Freight Collect

DFOB Destination, Freight Prepaid

Show Suggested Answer

Suggested Answer: A

Implementing a reverse supply chain requires first defining a consistent return process that can be integrated into the existing forward supply chain. This ensures that all franchisees follow the same procedures for handling returns, which enhances efficiency, customer satisfaction, and potentially reduces costs. Standardizing the return process also allows for better tracking and management of returned goods, improving overall supply chain performance. By addressing this foundational step first, MNO, Inc. can ensure a smoother implementation of the reverse supply chain. Reference:

* Rogers, D. S., & Tibben-Lembke, R. (2001). An Examination of Reverse Logistics Practic-es. Journal of Business Logistics, 22(2), 129-148.

* Blanchard, D. (2010). Supply Chain Management Best Practices. John Wiley & Sons.

by Rocco at Dec 10, 2024, 08:08 PM

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Albina

2 months ago

Personally, I'd go with option A. It just seems the most logical choice, you know? What do you think, should we grab a coffee after the exam and discuss it further? I'm buying, of course.

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Jessenia

5 days ago

Sure, let's grab coffee after the exam. I'm in!

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Rozella

6 days ago

I think option A is better because it puts the liability on the supplier.

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Willard

8 days ago

Sure, I'd love to grab coffee after the exam. Thanks for offering to buy!

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Chaya

13 days ago

That sounds like a good choice. I agree with you.

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Margart

14 days ago

A) FOB Origin, Freight Allowed

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Dallas

14 days ago

B) FOB Origin, Freight Collect

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Keva

1 months ago

That sounds like a good choice. I agree with you.

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Isabella

1 months ago

A) FOB Origin, Freight Allowed

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Lina

2 months ago

I'm going with option B, FOB Origin, Freight Collect. It just seems the most straightforward to me. The supplier is liable, and the buying firm can pay the shipper directly. Easy peasy, lemon squeezy!

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Jaime

2 months ago

Hmm, I'm not sure. Option D, FOB Destination, Freight Prepaid, could work too. The supplier is responsible for the shipping, and the buying firm doesn't have to worry about it. But then again, I'm not the shipping expert here.

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Gilberto

2 months ago

Option C, FOB Destination, Freight Collect, seems like the way to go. The supplier is liable for any damage, and the buying firm can still pay the shipper directly. It's a win-win!

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Madonna

2 months ago

I think option A, FOB Origin, Freight Allowed, is the best choice here. The supplier is responsible for the products until they're delivered, and the buying firm can pay the shipper directly for the shipping costs.

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Glory

1 months ago

I think option D, FOB Destination, Freight Prepaid, would be better. The buying firm can have more control over the shipping process and costs.

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Emmanuel

2 months ago

I agree, option A is the best choice. It ensures the supplier has liability for any damaged products and allows the buying firm to pay the shipper directly.

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Sheldon

2 months ago

That's a good point, Maryann. Option D does make it easier for the buying firm to handle shipping costs directly.

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Maryann

2 months ago

I disagree, I believe option D) FOB Destination, Freight Prepaid is better because the buying firm can pay the shipper directly for shipping costs.

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Sheldon

3 months ago

I think the best option is A) FOB Origin, Freight Allowed because the supplier will have liability for damaged products and can file claims with the shipper.

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