APICS Certified Supply Chain Professional (CSCP) — Question 297

Managing supply chain risks includes which of the following activities?

Answer options

• 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

Correct answer: A

Explanation

The correct answer, A, is focused on ensuring that there are backup options available if a primary supplier fails, which is crucial for risk management. Options B and D are more about financial and logistical responses to disruptions rather than proactive risk management strategies, while C incorrectly implies a cost-sharing approach that doesn't directly address risk mitigation.