Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?
Correct Answer: B
Question 17
Which of the following statements describes a continuous replenishment strategy in a retail environment?
Correct Answer: C
Section: Implementation and Operations
Question 18
The primary reason for the evolution of the supply chain is:
Correct Answer: A
Question 19
A firm is assessing the risk of business disruption due to several types of natural disasters. When determining the risk of each type of disaster, the firm should consider the probability of each type of disaster and the:
Correct Answer: A
When assessing the risk of business disruption due to natural disasters, a firm must evaluate both the probability of each type of disaster occurring and the potential consequences of such disruptions. This approach ensures a comprehensive understanding of the risk landscape and helps prioritize mitigation strategies based on the severity of the impact. The consequences of a disruption can include financial losses, operational downtime, damage to infrastructure, and reputational harm. By assessing the potential consequences, the firm can develop targeted contingency plans, allocate resources effectively, and enhance overall resilience to various types of disasters. References: * National Institute of Standards and Technology (NIST). (2015). "Community Resilience Planning Guide for Buildings and Infrastructure Systems." NIST Special Publication 1190. * FEMA. (2013). "Threat and Hazard Identification and Risk Assessment Guide." Comprehensive Preparedness Guide (CPG) 201.
Question 20
Which of the following strategies can be used to help manage global risks?
Correct Answer: D
Managing global risks requires strategies that allow a supply chain to adapt quickly to unexpected changes or disruptions. Flexibility in the supply chain can help manage global risks by enabling companies to adjust their operations in response to unforeseen events, such as natural disasters, geopolitical tensions, or changes in market demand. This might involve diversifying suppliers, utilizing multiple transportation modes, or adopting flexible manufacturing systems. * Direct shipment refers to sending products directly from supplier to customer, which might not address broader global risks. * Cross-docking is a logistics practice that involves unloading goods from inbound transport and loading them directly onto outbound transport, without warehousing. It optimizes efficiency but does not inherently manage global risks. * Mass customization is a production strategy that combines elements of mass production and customization but does not directly address global risk management. References: * Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation." * Sheffi, Y. (2005). "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage."
