Supply Chain and Logistics Supply Chain Risk Management 3

Question 1

Supply chain visibility tools help manage risk primarily by:

Accepted Answer

Providing real-time data on inventory, shipments, and supplier status to detect disruptions early

Answer

Eliminating the need for safety stock entirely

Answer

Automating supplier contract negotiation

Answer

Replacing demand forecasting models

Question 2

Which of the following events would be classified as a 'force majeure' supply chain disruption?

Accepted Answer

An earthquake destroying a key manufacturing facility

Answer

A supplier raising its prices by 5%

Answer

A customer requesting shorter lead times

Answer

A 3PL switching to a new warehouse management system

Question 3

A company decides to hold a strategic inventory reserve at a neutral warehouse in case its primary supplier fails. This tactic is best described as:

Accepted Answer

Supply chain hedge inventory

Answer

Just-in-time replenishment

Answer

Demand smoothing

Answer

Vendor-managed inventory

Question 4

ESG (Environmental, Social, and Governance) risk in supply chains refers primarily to:

Accepted Answer

Risks arising from unsustainable practices, labor violations, or poor governance in the supply chain

Answer

Electronic shelf-edge price tags

Answer

Enterprise software integration challenges

Answer

Excess stock and goods write-offs

Question 5

Which supply chain risk management document details the step-by-step actions teams must take when a specific risk event (e.g., port closure) occurs?

Accepted Answer

Risk response playbook (contingency plan)

Answer

Supplier scorecard

Answer

Incoterms agreement

Answer

Demand forecast report

Question 6

The concept of 'supply chain agility' in risk management means:

Accepted Answer

The ability to rapidly reconfigure supply chain operations in response to unexpected changes

Answer

Maintaining the lowest possible inventory levels at all times

Answer

Using the fastest available transportation mode

Answer

Negotiating flexible payment terms with suppliers

Question 7

Which international standard provides guidance for implementing an organizational risk management framework, commonly applied to supply chain risk?

Accepted Answer

ISO 31000

Answer

ISO 9001

Answer

ISO 14001

Answer

ISO 28000