Question 31

Accumulating inventory buffers is a strategy for:

Reducing demand uncertainty

Accepting demand uncertainty

Hedging against demand uncertainty

Avoiding demand uncertainty

Question 32

Many companies prepare for unexpected catastrophic disruptions, but neglect to also plan for routine disruptions, such as a supplier quality issue.

True /False

Question 35

If a commodity supplier's operations are disrupted, the buying company's production line could potentially be shut down.

True/False

Question 36

Which is a good strategy for dealing with suppliers of items that have low risk for causing a disruption?

Implement a dual-sourcing strategy

Require suppliers to operate multiple production sites

Negotiate long-term contracts with a penalty clause for non-performance

Carefully track suppliers' performance