Multiple-Choice Questions (MCQs) on Risk Management in Supply Chain
- Which of the following is a common risk in supply chains?
- A. Currency fluctuations
- B. Supplier bankruptcy
- C. Natural disasters
- D. All of the above
- Answer: D. All of the above
- What is the term for a strategy used to spread risk by diversifying sources of supply?
- A. Centralization
- B. Hedging
- C. Decentralization
- D. Outsourcing
- Answer: B. Hedging
- Which of the following is an example of operational risk in supply chains?
- A. Changes in regulations
- B. Political instability
- C. Labor strikes
- D. Technological advancements
- Answer: C. Labor strikes
- In supply chain risk management, what does "resilience" refer to?
- A. The ability to forecast demand accurately
- B. The capacity to recover quickly from disruptions
- C. The process of minimizing inventory
- D. The skill of negotiating better contracts
- Answer: B. The capacity to recover quickly from disruptions
- What is the purpose of conducting a risk assessment in supply chain management?
- A. To identify potential risks and their impacts
- B. To reduce the number of suppliers
- C. To increase the speed of production
- D. To expand market reach
- Answer: A. To identify potential risks and their impacts
- Which risk mitigation strategy involves keeping additional stock on hand?
- A. Outsourcing
- B. Inventory buffering
- C. Supplier diversification
- D. Just-in-time production
- Answer: B. Inventory buffering
- What does the acronym "BCP" stand for in the context of supply chain risk management?
- A. Business Continuity Plan
- B. Basic Chain Planning
- C. Business Cycle Prediction
- D. Budget Control Process
- Answer: A. Business Continuity Plan
- Which tool is commonly used to map out supply chain risks and their impacts?
- A. SWOT Analysis
- B. Risk Matrix
- C. PEST Analysis
- D. Pareto Chart
- Answer: B. Risk Matrix
- What is the first step in the risk management process for supply chains?
- A. Risk mitigation
- B. Risk identification
- C. Risk monitoring
- D. Risk assessment
- Answer: B. Risk identification
- Which of the following is NOT a financial risk in supply chains?
- A. Credit risk
- B. Exchange rate risk
- C. Supplier financial stability
- D. Inventory obsolescence
- Answer: D. Inventory obsolescence
- Why is supplier relationship management important in mitigating supply chain risks?
- A. It reduces the need for inventory
- B. It enhances collaboration and trust
- C. It simplifies the procurement process
- D. It lowers transportation costs
- Answer: B. It enhances collaboration and trust
- Which type of risk is most associated with the reliability of information flow in a supply chain?
- A. Environmental risk
- B. Operational risk
- C. Informational risk
- D. Financial risk
- Answer: C. Informational risk
- What is a key benefit of using technology in supply chain risk management?
- A. Increased labor costs
- B. Enhanced visibility and tracking
- C. Reduced need for risk assessment
- D. Simplified supplier selection
- Answer: B. Enhanced visibility and tracking
- Which of the following can help companies prepare for potential supply chain disruptions?
- A. Relying on a single supplier
- B. Conducting regular audits and reviews
- C. Reducing inventory levels to a minimum
- D. Ignoring minor disruptions
- Answer: B. Conducting regular audits and reviews
- What does the term "supply chain agility" refer to?
- A. The ability to reduce costs
- B. The ability to respond quickly to changes and disruptions
- C. The ability to increase production speed
- D. The ability to expand into new markets
- Answer: B. The ability to respond quickly to changes and disruptions
- Which of the following practices can increase supply chain resilience?
- A. Implementing a just-in-time inventory system
- B. Centralizing all manufacturing operations
- C. Building strong relationships with multiple suppliers
- D. Reducing the number of distribution centers
- Answer: C. Building strong relationships with multiple suppliers
- Which type of analysis is useful for understanding the potential impacts of risks on supply chains?
- A. Cost-benefit analysis
- B. Failure mode and effects analysis (FMEA)
- C. SWOT analysis
- D. Value chain analysis
- Answer: B. Failure mode and effects analysis (FMEA)
- What is "dual sourcing" in supply chain risk management?
- A. Using a single supplier for all products
- B. Having two suppliers for critical components
- C. Relying on in-house production and outsourcing
- D. Combining local and international suppliers
- Answer: B. Having two suppliers for critical components
- Which factor is NOT typically considered in supply chain risk management?
- A. Supplier reliability
- B. Demand variability
- C. Marketing strategy
- D. Political climate
- Answer: C. Marketing strategy