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

Real-time visibility platforms give supply chain managers early warning of delays, shortages, or disruptions so they can respond proactively.

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

Force majeure refers to extraordinary, unforeseeable events—such as natural disasters—beyond the control of the parties involved, typically excusing contractual non-performance.

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

Hedge inventory is safety stock held specifically as insurance against supply disruptions, separate from regular cycle or safety stock calculations.

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

ESG risk covers exposure to reputational, legal, and operational harm from suppliers engaging in environmentally harmful practices, labor abuses, or governance failures.

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

A risk response playbook (or contingency plan) pre-defines who does what, when, and how when a specific risk scenario materializes.

Supply Chain and Logistics Practice Test

Supply Chain and Logistics Practice Test

Supply Chain and Logistics Supply Chain Risk Management 3