A company closely monitors supplier performance and notices recent late deliveries from
one supplier. The supplier discloses flood damage at the plant. The company quickly shifts
sourcing to a new supplier and has minimal loss of sales. Which of the following risk
strategies reflects the company's actions?

A.

Achieving low cost through reaction

B.

Creating an adaptive supply chain community

C.

Reducing supply chain vulnerability

D.

Investing in redundancy

The process used to determine the impact of promotions, price discounts, and rebates on
demand forecasts commonly is referred to as demand:

A.

planning.

B.

forecasting.

C.

aggregating.

D.

shaping.

What is the primary benefit of using a central storage warehouse for all components rather
than using point-of-use storage?

A.

Reduced need for bar codes and radio frequency identification technology

B.

Reduced material handling costs

C.

Ease of control and count accuracy

D.

Maintain a cleaner shop floor

Which of the following strategies would increase overall supply chain risk?

A.

Single sourcing a product that makes the highest annual profit

B.

Outsourcing a product that is not well suited to your operations

C.

Identify multiple sources for a product that has a potential for supply chain disruption

D.

Internally manufacturing a product that has a high level of technical intellectual property

A product design that can be produced to requirements even when conditions in the
production process are unfavorable typically is known as what type of design?

A.

Universal

B.

Computer-aided

C.

Modular

D.

Robust

Which of the following actions is most likely to increase total supply chain risk?

A.

Standardizing components used in a product family

B.

Expanding operations to multiple locations

C.

Consolidating manufacturing locations

D.

Reducing the supplier base for commodity-type components

When an importer and manufacturer are operating in a free trade zone, payment of a
customs duty is triggered when products are:

A.

returned.

B.

assembled.

C.

stored.

D.

distributed.

A manufacturer offers a trade-in allowance on a new machine when the customer returns
the old machine. The manufacturer reconditions the returned machine locally and then sells
it on the used market for a profit. This program is an example of a focus on:

A.

environmentally sensitive engineering.

B.

gray box design.

C.

green manufacturing.

D.

sustainability in operations

Which of the following ISO standards is used to assist organizations with sustainable
development?

A.

ISO 31000

B.

ISO 14001

C.

ISO 26000

D.

ISO 9001

Managing supply chain risks includes which of the following activities?

A.

Developing alternatives to key suppliers

B.

Setting aside funds for disruption-recovery efforts

C.

Charging each supply chain partner a portion of risk cost

D.

Creating extra inventory to cover disruptions in the supply chain