APICS Certified Supply Chain Professional (CSCP) — Question 528

A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?

Answer options

• A. Achieving low cost through reaction
• B. Creating an adaptive supply chain community
• C. Reducing supply chain vulnerability
• D. Investing in redundancy

Correct answer: B

Explanation

The correct answer is B because the company demonstrated adaptability by quickly shifting to a new supplier in response to the situation. Options A and D do not capture the proactive and collaborative approach taken, while C focuses on reducing risk but does not emphasize the importance of creating an adaptive network.