1. Which of the following strategies can be used to help manage global risks?

A) Direct shipment
B) Cross-docking
C) Mass customization
D) Flexibility



2. Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component. To meet customer requirements, the company should first:

A) implement statistical process control for the component.
B) bring manufacturing of the critical component in-house.
C) develop an alternate source of supply.
D) certify the supplier of the component.



3. A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity. Which of the following actions is most appropriate?

A) Source from domestic suppliers.
B) Conduct a risk assessment.
C) Carry additional safety stock.
D) Spread logistics across multiple carriers.



4. 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



5. The most important challenge to consider when sourcing globally is:

A) the identification of sources capable of producing the materials.
B) the availability of low-cost labor and energy.
C) complying with specific import/export issues.
D) balancing the difference between piece price and total cost.