Certified Supply Chain Professional CSCP Practice CSCP Supply Chain Risk Management 1

Question 1

Which analytical tool is used in supply chain risk management to systematically identify potential failure points, their causes, and their effects on operations?

Accepted Answer

Failure Mode and Effects Analysis (FMEA)

Answer

Economic Order Quantity (EOQ) model

Answer

ABC inventory classification

Answer

Value stream mapping

Question 2

A company shifts 30% of its sourcing from a single overseas supplier to a domestic supplier to reduce exposure to port disruptions. This strategy is best described as:

Accepted Answer

Risk mitigation through geographic diversification

Answer

Risk avoidance

Answer

Risk transfer

Answer

Risk acceptance

Question 3

In supply chain risk management, what does the term 'risk transfer' most commonly involve?

Accepted Answer

Using insurance or contractual clauses to shift financial exposure to another party

Answer

Moving inventory closer to end customers

Answer

Eliminating a high-risk supplier from the approved vendor list

Answer

Increasing safety stock levels to absorb demand shocks

Question 4

The 'bullwhip effect' is considered a supply chain risk primarily because it:

Accepted Answer

Amplifies demand variability upstream, leading to overproduction, excess inventory, and cash flow stress

Answer

Causes downstream retailers to hold too little safety stock

Answer

Forces suppliers to reduce lead times unpredictably

Answer

Results in single-source dependency across the supply network

Question 5

Which metric best measures how quickly a supply chain can return to normal operations after a major disruption?

Accepted Answer

Recovery Time Objective (RTO)

Answer

Perfect Order Rate

Answer

Cash-to-Cash Cycle Time

Answer

Fill Rate

Question 6

When a supply chain risk assessment assigns a score based on both the likelihood of occurrence and the severity of impact, the resulting combined score is used to:

Accepted Answer

Prioritize which risks require the most urgent mitigation resources

Answer

Calculate the reorder point for each SKU

Answer

Determine the optimal number of distribution centers

Answer

Set supplier payment terms