QUESTION 17

What preventive action can a manufacturer take to be prepared for a potential labor disruption at a major port?

	a.	Use a single overseas supplier.
	b.	Negotiate in good faith.
	c.	Increase production speed.
	d.	Increase safety stock.

1 points

QUESTION 18

A manufacturer decides to use an overseas steel supplier for its production line but is wary of potential quality issues associated with the new steel supply. What preventive action can the manufacturer take to minimize the risk that the supplier is not capable of producing acceptable quality prior to ordering?

	a.	Prepare a legal challenge in anticipation of the supplier breaching the contract.
	b.	Adjust its manufacturing process to accept inferior steel products.
	c.	Attain extra warehouse space for additional safety stock.
	d.	Conduct sampling and inspection at the supplier location.

1 points

QUESTION 19

Which would be considered an external risk to the supply chain?

	a.	Equipment breakdowns
	b.	Labor shortages
	c.	Poor quality
	d.	Poor forecasting

1 points

QUESTION 20

A manufacturer used demand forecasting to determine how many products it would need to manufacture for the next

quarter. Unfortunately, the demand forecast was inaccurate, and the manufacturer could not meet actual demand,

due to lack of inventory. What is an action the manufacturer can take to mitigate this risk in the future?

	a.	Set safety stock using statistical forecasting.
	b.	Audit quality processes.
	c.	Promote supply chain visibility and data sharing.
	d.	Adopt processes and shared systems.