BMGT478 Final Review1mn

Global supply chains typically have longer performance cycles than domestic supply chains. All of the following are factors that contribute to this situation except:

High volume of fashion merchandise involved in global markets

Which of the following statements is false regarding the effect of insurance on managing risk?

Insurance tends to encourage supply chain managers to consider a wide range of other responses to risk.

In the article "Managing Risks: A New Framework," the authors categorize risk as preventable, strategic and external. Which of the following is not true regarding these categories of risk?

Strategy risks are inherently undesirable.

Demand risks can be reduced using a variety of tools. These include all of the following except:

Utilizing multiple vendors to support manufacturing

All of the following are true of Business Continuity Management except

"Since you don't know what might happen, it is a waste of resources to engage in contingency planning."

Regarding managers' perception of risk, which of the following statements is false:

According to numerous surveys, most managers perceive risk to be decreasing.

In the article, "Should Your Firm Invest in Cyber Risk Insurance?" Scott Shackelford, examines whether firms today should invest in cyber risk insurance. Which of the following is not a conclusion of this article?

Because of the increased risk and the cost related to cyber incidents, fewer companies offering IT insurance.

Which of the following is not true regarding cyber security and supply chain risk?

Because of the unique nature of Cyber security, it should be managed separately from other supply chain security elements.

Some risks are inherently unknowable and cannot be identified in advance. These risks require a different type of approach that is not based on an analysis of identifiable risks. These categories of risk are often handled using:

Business continuity planning

The article, "Global Supply Chains: Understanding Risks and Rewards," discusses the impact of global markets on global supply chain operations. All of the following are conclusions of the article, except:

Companies should focus on ensuring decentralized supply chain management operations.

In the case referred to above, the number one recommendation for mitigating political risk was:

Diversification

Jonathan Wright in his article, "Taking a Broader View of Supply Chain Resilience," concludes all of the following except:

Effective risk management and increased efficiency are by their very nature mutually exclusive.

Understanding the risk and complexity of logistics in a global economy, there is a typical (normal) path that most firms will go through as they evolve from domestic to global operations. The stages of international development are

Export/Import - Local Presence - Globally Integrated Enterprise

Which of the following are characteristics of Scenario Analysis?

It examines possible future conditions that might follow management decisions.

In his article, "Creating Demand-Responsive Supply Chains," Sheffi Yossi discusses the volatility of markets and the difficulty in forecasting demand. According to Yossi, "even the best forecasting tools are no longer up to the task of predicting demand." He has several recommendations to deal with this problem. Which of the following is not one of his suggestions?

Lengthen the forecasting horizon in order to better coordinate production capacity with demand.

Which of the following types of manufacturing strategies would imply the highest level of risk for a supply chain?

Make to stock

Based on our discussions of "Managing Risk and Ensuring Business Continuity at the Maryland and Virginia Milk Cooperative Association," which of the following statements are false:

Milk manufacturing was not subject to the bullwhip effect.

Which of the following would not be a "solution" to losses due to data compromise?

Minimize upgrades and innovation of IT hardware, software, and security programs to reduce compatibility problems with new technology.

In the same article referenced above, the author summarizes the White Study, 'The 2012 National Strategy for Global Supply Chain Security' that focused on a broad range of risks facing supply chains. Which of the following was not a risk identified in the study?

Monsoons

Which of the following statements are false regarding supply chain design and risk?

Parallel paths tend to increase risk

All of the following are true regarding risk transfer except:

Reassess the risk

In class we discussed the fact that the complexity of logistics systems varies widely among different geographic areas, e.g., North America, Europe and the Pacific Rim. Which of the following was not a characteristic of supply chains in the Pacific Rim?

Relatively compact geography

Based on this semester's analysis and discussion of supply chain risk management, all of the following would be appropriate conclusions regarding risk and risk management except:

Thanks to the recent management attention to risk and the development of tools for managing and mitigating risk, supply chain risks are declining.

A decoupling point is the most upstream point in the supply chain where final consumer demand actually penetrates. Which of the following statements is not true regarding the decoupling point?

The decoupling point is the point at which postponement can most easily be arranged; customized stocks are held upstream and generic stocks downstream.

Refer to the article, "Rapid response capability in value-chain design," by Charles H. Fine, Roger Vardan, Robert Pethick & Jamal El-Hout. All of the following are conclusions of the authors except:

The faster an industry's "clock speed," the longer the half-life of any competitive advantage.

All of the following are "Best Practices" of Business Continuity Management except:

The goal of BCM is to analyze a specific risk or to evaluate how to mitigate the risk.

All of the following are principles of designing a resilient supply chain except:

The process begins by examining the practices and procedures of your supply chain partners.

Which of the following would not be an objective or rationale for firms to pursue globalization?

To better protect intellectual property

All of the following are true regarding risk transfer except:

Transfer of risk reduces overall supply chain risks, since the risk is removed from the organization originally subject to the risk.

According to our in class discussion regarding political risk related to the Russia Ukraine Gas Pipeline Case, political risk would include all of the following except:

a. A change in the political team in power as a result of a democratic election. b. A change in the political team in power as a result of a revolution or domestic unrest. c. A change in the legal regulations regarding business activities. d. A change in local attitudes regarding foreign investments. (all of them are correct)

Based on the article "Rapid response capability in value-chain design, the authors suggest that managers might combine strategic value with economic value in assessing key elements of the value chain. This synthesizing process provides managers with insights on insourcing, outsourcing, leveraging, and harvesting. Which of the following are appropriate (viable, valid, true) strategies based on this approach?

a. High economic value and high strategic value elements of the value chain should be insourced. b. Low economic value and low strategic value elements of the value chain should be outsourced. c. Low strategic value and high economic value elements of the value chain should be harvested. (all are true)

13. One of the major dilemmas of risk and supply chain management is the pressure on managers to design and operate lean supply chains in order to reduce costs and the desire to reduce risk by adding redundancy. All of the following are true of this dilemma except:

a. Supply chains that are too lean may be more vulnerable to risk b. Supply chains that are too fat may reduce profits c. "Leaning down too far" can cause higher cost of recovery following a disruption d. The optimal level of leanness is referred to as resilience. (all are true)

Surveys of supply chain managers have identified certain barriers that may cause them to be reluctant to implement supply chain management risk strategies. Which of the following is not a barrier to pursuing supply chain risk management strategies?

a. The benefits of supply chain risk management are difficult to quantity (monetize). b. The focus on supply chain efficiency prevents implementing supply chain risk management. c. Fear of spreading (sharing) important business information. d. Limited acceptance that risk goes beyond the company walls. (all are true)

All of the following are true of risk and customer service except:

a. The output of the supply chain is customer service. b. Risk can lead to consumer disappointment which can lead to business failure. c. The risk of disappointing customers is one of corporate life or death. d. Customer service risk should be incorporated into strategic thinking within the organization and the supply chain. (all are true)

5. In the article, "Balancing Global Risk and Return," by David Bover, the author discusses how to manage risk more effectively and reach the right balance between risk of global supply chains and return. All of the following were conclusions of this article except:

b. The optimal balance between risk and return will lie somewhere along a hypothetical line called "The Leveraged Edge."

which of the following would not contribute to greater risk for global supply chains relative to domestic supply chains?

higher visibility

According to the Aberdeen Research Group, which of the following is not a key driver of security initiatives?

product tampering

In the article, "Managing Risk: A New Framework," all of the following are true of preventable risks except:

rules based risk management reduces the likelihood of a disaster, but not the impact

All of the following would be examples of process risks except:

supplier going bankrupt