BCM Supply Chain Continuity & Third-Party Risk Management

Question 1

What is the primary purpose of conducting a Business Impact Analysis (BIA) for the supply chain?

Accepted Answer

To quantify the impact of supplier disruptions on business operations

Answer

To identify all suppliers globally

Answer

To negotiate better pricing with suppliers

Answer

To establish supplier performance metrics

Question 2

Which term describes the maximum acceptable time a business can function without a critical supplier before suffering irreversible harm?

Accepted Answer

Maximum Tolerable Period of Disruption (MTPD)

Answer

Recovery Time Objective (RTO)

Answer

Recovery Point Objective (RPO)

Answer

Minimum Business Continuity Objective (MBCO)

Question 3

What does 'dual sourcing' mean in supply chain continuity planning?

Accepted Answer

Qualifying two or more suppliers for the same critical component or service

Answer

Using two shipping methods for all deliveries

Answer

Maintaining two separate warehouses for critical inventory

Answer

Creating two versions of the supply chain continuity plan

Question 4

Which ISO standard specifically addresses supply chain security and resilience management systems?

Accepted Answer

ISO 28000

Answer

ISO 22301

Answer

ISO 9001

Answer

ISO 31000

Question 5

In supply chain BCM, what defines a 'Tier 1 supplier'?

Accepted Answer

A supplier that directly provides goods or services to your organization

Answer

The highest-rated supplier based on quality scores

Answer

A government-certified preferred supplier

Answer

A supplier located within the same country as your organization

Question 6

What document should a critical supplier provide to demonstrate their BCM capability to your organization?

Accepted Answer

Business Continuity Plan or Business Continuity Statement

Answer

Annual financial report

Answer

ISO 9001 quality management certificate

Answer

Environmental impact assessment

Question 7

Which inventory strategy maintains buffer stock specifically to absorb supply chain disruption impacts?

Accepted Answer

Safety stock or strategic inventory

Answer

Just-in-Time (JIT) inventory

Answer

Vendor Managed Inventory (VMI)

Answer

Cross-docking