SCM Exam 3
Risk priority number (RPN) is a product of Group of answer choices Probability, Impact and Timeliness Severity, Occurrence and Detection Probability, Impact and Detection Severity, Occurrence and Timeliness
Severity, Occurrence and Detection
A consignment of 2 twenty feet containers and 4 forty feet containers is equal to 4 TEUs 6 TEUs 8 TEUs 10 TEUs
10 TEUs (twentry feet = 1 TEU; Fortty feet = 2 TEUs)
A 76L*34W*37.5B box carries 12 kilograms of material. If this box is to be shipped by air freight, the dimensional weight of this box would be [0.006 cubic meters = 1kg dimensional weight]: 20 kilograms 14 kilograms 12 kilograms 16.15 kilo grams
16.15 kilo grams (0.006/(76*34*37.5)
Poka-Yoke is an example of Group of answer choices Risk avoidance Risk transfer Risk mitigation x Risk acceptance
Risk avoidance
What is triple bottom line? Group of answer choices An accounting tool that looks at cost, profit and loss A management strategy which focuses on corporate social responsibility A management strategy which states all the attention should be on profits An accounting tool that looks at the impact on people, planet and profits
An accounting tool that looks at the impact on people, planet and profits
The four possible options to manage a risk are: Group of answer choices Avoid, evade, transfer and accept Avoid, mitigate, transfer and evade Avoid, mitigate, transfer and accept Evade, mitigate, transfer and accept
Avoid, mitigate, transfer and accept
If two competing firms have a choice whether to get involved in social initiative or not, in most cases: Both firms would decide to not work on social causes Both firms would decide to work on social causes The larger of the two firms would decide to work on social causes The smaller of the two would decide to work on social causes
Both firms would decide to not work on social causes
A firm wants advice on how to engage the various not-for-profit environmental and social groups. A good source of this advice would be: Group of answer choices ISO 23000 ISO 26000 x ISO 14000 ISO 45000
ISO 26000
A risk should be avoided when Group of answer choices The risk event is very difficult to detect It has a high probability of occurrence It has a high risk propensity number x The impact of risk is very high
It has a high risk propensity number
The organization Fair Trade does all of these except Group of answer choices Support construction of hospitals and schools at the supplier's location x b. Ensure that the suppliers do not use specified chemicals x Aggregate suppliers into a coalition Lobby to reduce taxation for its members
Lobby to reduce taxation for its members
Which of the following goals characterizes the triple bottom line? Group of answer choices Time, Place, and Form People, Planet, and Profit Accounting, Finance, and Economics Financial, customer, process
People, Planet, and Profit
A key part of risk management is that Group of answer choices The cost of managing the risk must be lower than the cost of risk Risks must be avoided at all costs Risks that have a very low chance of occurring must not have a high priority All risks must be mitigated to ensure workplace safety x
The cost of managing the risk must be lower than the cost of risk
Which of these statements best describes a risk? Group of answer choices Uncertainty when looking at the future x Clarity in future decisions Certainty of not suffering harm or loss Uncertainty when looking at the past
Uncertainty when looking at the future
Failure Mode Effects Analysis (FMEA) can be described as: Group of answer choices A method to prioritize the risks A method to transfer risk A method to eliminate risks A method to identify risks
a method to prioritize risks
Which of these characterizes a sustainable approach as per the Brundtland commission definition: Group of answer choices A paper company planting trees to ensure future availability of raw material A mining company shutting down mines to reduce pollution An agriculture company only buying from farmers that use organic fertilizers A shipping company reducing fishing levels to ensure future availability of fishes
a paper company planting trees to ensure future availability of raw materials
A business risk is best defined as Group of answer choices A definite gain to the business A definite cost to the business A possible cost to the business x A possible gain to the business
a possible cost to the business
Ship agents: Are travel agents for the cargo Offer customers quotes from different shipping lines Are a form of 4th party (4PL) service providers Act as owners of shipping lines at a port
act as owners of shipping lines at a port
Which of these statements is true regarding stake holders: Group of answer choices Customers are the most important stakeholders b. Suppliers can never be important stakeholders All stakeholders are important Shareholding stakeholders must be given the due priority
all stakeholders are important
A key challenge in using private fleets is Ensuring pollution compliance Reducing maintenance costs Managing driver routines Arranging for backhauls
arranging for backhauls
The type of warehouse that supports movement of goods from one supplier to many customers is called as: Cross dock warehouse Break bulk warehouse Consolidation center Consignment center
break bulk warehouse
The purpose of ISO14001 is to help companies design and implement Group of answer choices Environment management systems x Socio-economic management system Safety and health management system Social management systems
environment management systems
If the physical inventory is higher than the inventory on records, it is likely to lead to higher technology cost higher inventory cost higher prevention cost lower customer satisfaction
higher inventory cost
The cheaper modes of transport like the ships are associated with Lower lead time, lower inventory and better customer service Higher lead time, lower inventory and better customer service Lower lead time, higher inventory and poorer customer service Higher lead time, higher inventory and poorer customer service
higher lead time, higher inventory, and poorer customer service
A key feature of less than truck load (LTL) service providers is that they use: First mile operators Palletized operations Point-to-point network Hub and spoke network
hub and spoke network
Offshore outsourcing has all these risks EXCEPT: Group of answer choices Increase of cost of product x Loss of control Theft of intellectual property Natural disasters on the shipping route
increase of cost of product
A shoe company designs a shoe with only one compound so that the shoe can be recycled easily at the end of life. This approach is called as: Group of answer choices End-of-life Assessment Recyclability Assessment b. Environmental Assessment Lifecycle Assessment x
lifecycle assessment
If the physical inventory is lower than the inventory on records, it is likely to lead to Lower customer satisfaction Higher technology cost Higher prevention cost Higher inventory cost
lower customer satisfaction
The faster modes of transport like the airplanes are associated with Higher lead time, higher inventory and poorer lead time Lower lead time, lower inventory and better customer service Lower lead time, higher inventory and better customer service Higher lead time, lower inventory and better customer service
lower lead time, lower inventory and better customer service
Consolidation warehouses Move material from one supplier to many customers Move material from many suppliers to many customers Move scarce resources from factories to hospitals Move material from many suppliers to one customer
move material from many suppliers to One customer
Risk transfer: Group of answer choices Reduces the impact but not the probability of risk Neither reduces the impact or probability of risk x Reduces the probability but not the impact of risk Reduces both the impact and probability of risk
neither reduces the impact or probability of risk
A country uses child labor as an excuse to ban imports from developing countries This practice is known as: Group of answer choices Green washing Anti-social behavior Non-tariff barriers x Myopic environmental approach
non tariff barriers
A fourth party logistics (4PL) service provider: Ensures low logistics cost Have high expertise in one mode of transport Offers a bundle of logistics services Should be used for all imports
offers a bundle of logistics services
A key feature of full truck load (FTL) service providers is that they use: Palletized operations Point-to-point network First mile operators Hub and spoke network
point to point network
A company has an aim to drastically reduce carbon emissions during the intra country (within the country) transportation. The ideal for of transportation for this company would be freight forwarder networks road networks 3rd party networks rail networks
rail networks
The waste hierarchy according from the most preferred to the least preferred initiative is: Group of answer choices Reduce - Recycle - Reuse - Recover energy Reuse - Reduce - Recycle - Recover Energy Reduce - Reuse - Recycle - Recover energy x Reuse - Recycle - Reduce - Recover Energy
reduce - reuse - recycle - recover energy
The pollution caused by all my supply chain partners, business travel, etc. is labeled as: Group of answer choices Scope 2 emissions Score 1 emissions Scope 4 emissions Scope 3 emissions
scope 3 emissions
Greenwashing refers to the practice of: Group of answer choices Ensuring that company processes clean up any waste generated The attempt to create false impression of environment friendliness x y Removing all traces of environmental damage caused by the company Discussion environmental initiatives with experts
the attempt to create false impression of environment friendliness
In most cases, as the number of distribution warehouses decreases: The delivery lead time increases The inventory holding cost increases (x) The warehouse overhead decreases The outbound logistics cost decreases
the delivery lead time increase (?)
In most cases, as the number of distribution warehouses increase: The inventory holding cost increases The inventory ordering cost increases The customer delivery lead time increases The outbound logistics cost increases
the inventory holding cost increases
Which of these best explains the Scope 1 emissions for a mall: Group of answer choices The pollution generated by electric company that supplies power to the mall The pollution caused by customers' travel to the mall The waste generated during deep cleaning the floors x The waste generated in the factories of brands that sell in the mall
the waste generated during deep cleaning the floors
Multimodal transport involves Using the same shipping document and contract over multiple modes of transport Allowing customers to request dispatch by any mode of transport they deem fit Using market leader for each leg of material shipment Having the capability to use different modes of transport according to their cost
using the same shipping document and contract over multiple modes of transport
The Brundtland Commission definition of sustainability prioritizes: Group of answer choices Both the current needs as well as the future needs Future needs over current needs x Current needs over future needs Societal needs over company needs
v
The Incoterms specify when the payment should be made when the risk gets transferred from the exporter to the Importer the role of exporters Bank in the process the correct nomenclature for the product shipped
when the risk gets transferred from the exporter to the importer
