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Download Managing Supply Chain Risk Exam Dumps
NEW QUESTION 28
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. no – a 3rd party can only help in the solution stage of disaster recovery, not the planning stage
- 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 third party is a cheap option for disaster recovery planning
- D. yes- a 3rd party can provide broader experience and expertise
Answer: D
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 29
Petra Ltd is a manufacturer of upmarket baked goods and they have a range which is gluten free and therefore suitable for customers who have an intolerance of wheat. For this reason Petra Ltd is very strict about the ingredients that it sources. It’s main supplier has provided written agreement that they will test all ingredients in their processing factory to ensure that they are suitable for the gluten free diet before delivery is made, and once delivery is made the materials will be deemed accepted by the buyer. Is Petra right to accept this arrangement?
- A. yes- this reduces the risk of unsuitable materials entering Petra’s factory
- B. yes- this arrangement places the risk on the supplier rather than Petra
- C. no – this arrangement is unacceptable and Petra should void the contract
- D. no- Petra should arrange for additional tests to be conducted on the deliveries and only accept them once these tests have been completed
Answer: D
Explanation:
Explanation
Petra should arrange for additional tests to be conducted. This question is based on a real example in the exam.
In this scenario there is still significant risk for Petra even if the supplier is testing the materials. The supplier could miss something, or forge the results with disastrous consequences for Petra’s customers. Moreover it would severely damage Petra’s reputation. Therefore the wise thing would be for Petra to conduct additional tests in-house to ensure they are happy with the products and only then accept them. This could be an audit of
10% of deliveries to ensure compliance. Acceptance Testing is discussed in the textbook on p.70
NEW QUESTION 30
Which of the following will you put into box 5?
- A. new technology
(Correct) - B. outsource
- C. forward contract
- D. insurance
Answer: A
Explanation:
Explanation
New technology (ie a new web portal or payment mechanism) would help treat this risk.
NEW QUESTION 31
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