Supply Chain and Logistics Supply Chain Risk Management

Question 1

Which type of supply chain risk arises from a single supplier being the sole source for a critical component?

Accepted Answer

Single-source dependency risk

Answer

Demand risk

Answer

Currency fluctuation risk

Answer

Transportation delay risk

Question 2

A company maps all its suppliers, their suppliers, and beyond to identify hidden vulnerabilities. This practice is called:

Accepted Answer

Supply chain mapping (n-tier visibility)

Answer

Supplier auditing

Answer

Spend analysis

Answer

Vendor managed inventory

Question 3

Which risk mitigation strategy involves holding safety stock to protect against supply disruptions?

Accepted Answer

Risk buffering

Answer

Risk transfer

Answer

Risk avoidance

Answer

Risk sharing

Question 4

A black swan event in supply chain risk management refers to:

Accepted Answer

A rare, high-impact, hard-to-predict disruption

Answer

A predictable seasonal demand spike

Answer

A minor supplier quality defect

Answer

A routine freight delay

Question 5

Which of the following best describes the 'bullwhip effect' as a supply chain risk?

Accepted Answer

Demand signal distortion that amplifies order variability upstream

Answer

Overproduction due to machine breakdowns

Answer

Customs delays caused by incorrect documentation

Answer

Price volatility in raw material markets

Question 6

When a company transfers supply chain risk to an insurer by purchasing cargo or business interruption insurance, this is an example of:

Accepted Answer

Risk transfer

Answer

Risk avoidance

Answer

Risk acceptance

Answer

Risk reduction

Question 7

A supply chain resilience strategy that uses multiple geographically dispersed suppliers for the same component is known as:

Accepted Answer

Dual/multi-sourcing

Answer

Sole sourcing

Answer

Consignment stocking

Answer

Cross-docking