CLP CLP Risk Management & Sustainability 1 — Questions and Answers
Question 1: Which strategy involves sourcing the same component from multiple suppliers to reduce supply chain risk?
- Single sourcing
- Dual or multi-sourcing (Correct answer)
- Sole sourcing
- Forward integration
Correct answer: Dual or multi-sourcing
Dual or multi-sourcing distributes purchasing across two or more suppliers to mitigate the risk of supply disruption from a single source.
Question 2: A business continuity plan (BCP) in logistics is designed to:
- Optimize carrier rate negotiations
- Ensure critical logistics operations continue during disruptions (Correct answer)
- Automate warehouse receiving processes
- Reduce the number of distribution centers
Correct answer: Ensure critical logistics operations continue during disruptions
A BCP outlines procedures and resources needed to maintain essential logistics functions during and after a significant disruption.
Question 3: What does supply chain visibility primarily help organizations manage?
- Employee scheduling
- Risks by tracking goods and identifying potential disruptions in real time (Correct answer)
- Customer credit approvals
- Marketing campaign effectiveness
Correct answer: Risks by tracking goods and identifying potential disruptions in real time
Supply chain visibility enables organizations to monitor shipment status and inventory levels in real time, allowing faster response to emerging risks.
Question 4: Carbon footprint reduction in logistics is most directly achieved by:
- Increasing the number of distribution centers
- Optimizing transportation routes and shifting to fuel-efficient modes (Correct answer)
- Extending supplier payment terms
- Increasing safety stock levels
Correct answer: Optimizing transportation routes and shifting to fuel-efficient modes
Route optimization and modal shifts to more fuel-efficient transportation directly reduce greenhouse gas emissions from logistics operations.
Question 5: A risk heat map in supply chain management is used to:
- Track warehouse temperature zones
- Visualize and prioritize risks by likelihood and impact (Correct answer)
- Map freight lanes geographically
- Monitor real-time GPS data
Correct answer: Visualize and prioritize risks by likelihood and impact
A risk heat map plots identified risks on a matrix of likelihood versus impact to help prioritize mitigation efforts.
Question 6: Which term describes a supply chain designed to recover quickly after a disruption?
- Lean supply chain
- Resilient supply chain (Correct answer)
- Agile supply chain
- Green supply chain
Correct answer: Resilient supply chain
A resilient supply chain incorporates redundancy, flexibility, and rapid response capabilities to recover quickly from disruptions.
CLP CLP Risk Management & Sustainability 1
Which strategy involves sourcing the same component from multiple suppliers to reduce supply chain risk?