Question 11 2 Strategies to address supply chain risks include: (l) risk avoidance (11) risk reduction (iii) risk projection (IV) risk sharing OLII, III, and IV O II and Ill only I and IV only II and IV only O I, II, and IV only Question 12 Measuring enables managers to incorporate economics into outsourcing and other decisions. outsourcing ROI e distribution ROI O procurement ROI supply chain ROI Question 13 Which of the following is a benefit of outsourcing? Increased transportation costs. Decreased transportation costs. Some risks can be shifted to the supplier. Permits the conversion of some variable costs to fixed costs Question 15 What is the function of inventory? To hedge against price decreases. To smooth production requirements. To avoid order cycles To allow stockouts