APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 21

A logistics manager is developing a supply chain risk management plan incorporating contingency plans for alternatives to transport failures. Which of the following factors best represents this approach?

Answer options

• A. Avoidance
• B. Acceptance
• C. Mitigation
• D. Redundancy

Correct answer: A

Explanation

The correct answer is A. Avoidance involves proactively eliminating risks by planning for alternative transportation methods to prevent failures. The other options, such as Acceptance and Mitigation, do not focus on eliminating risks but rather on acknowledging them or reducing their impact without completely avoiding them.