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Download Managing Supply Chain Risk Exam Dumps

NEW QUESTION 37
An interconnected supply chain would have what affect on the creation of a risk register?

• A. actions to mitigate one risk, may create a new risk
• B. risks will be larger
• C. actions to mitigate risks will require a cross-functional team
• D. risks will sit with the procurement team

Answer: A

Explanation:
Explanation
Actions to mitigate one risk, may create another risk. This is a direct quote from p. 132

NEW QUESTION 38
A supplier of non-critical items has a low credit score, Which of the following actions should be taken? Select TWO options.

• A. replace the supplier as quickly as possible with a more financially stable supplier
• B. conduct a benchmarking exercise
• C. create a risk assessment and mitigation plan
• D. inform the CEO of the company

Answer: B,C

Explanation:
Explanation
The correct answers are conduct benchmarking and create a risk assessment. This supplier provides low value and low risk products - therefore the fact they have a bad credit rating isn't too much of a risk to your company. It's worth doing a benchmarking exercise to compare their position to others in the market to see if there are any industry-wide trends, and to create a risk assessment and mitigation plan. This could involve working with the supplier to help them improve their credit score, for example by using more favourable payment terms so they have a better cash flow. There's no need to replace them immediately, and there's no need to tell the CEO- they probably have more important things to think about than a singular supplier of non-critical items See p.81

NEW QUESTION 39
Which of the following are factors which can lead to a supplier becoming insolvent? Select THREE

• A. uncontrolled expenditure
• B. increased market share
• C. fraudulent activity
• D. a high financial ratio
• E. attrition of key employees

Answer: A,C,E

Explanation:
Explanation
1 2 and 3 are factors which can lead to a supplier becoming insolvent. 4- increased market share is a good thing, as it indicates the supplier is doing better than their rivals. A high financial ratio is also a good thing as it shows they have more assets than debt - so this is not a sign of insolvency. See p.24 for 'Supplier Risks'

NEW QUESTION 40
Robot Ltd manufactures high end robots. A lot of value is tied up in the stock that it holds within its warehouse as each robot is worth several thousand pounds. The company has decided to enlist the services of a third party provider for disaster recovery, to help them shape a plan for if something were to happen to the stock, such as a flood. Is this the correct thing for Robot Ltd to do?

• A. yes- a third party is a cheap option for disaster recovery planning
• B. no- Robot Ltd should create a cross-functional team to draw up the plan as internal stakeholders will understand the risks better than a 3rd party
• C. yes- a 3rd party can provide broader experience and expertise
• D. no - a 3rd party can only help in the solution stage of disaster recovery, not the planning stage

Answer: C

Explanation:
Explanation
The correct answer is 1 - the 3rd party can provide broader experience and expertise. They can advise on best practice and will know how to advise Robot Ltd as they will have experience across a wide range of companies. This is explained on p.91 of the study guide

NEW QUESTION 41
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