SUPPLY CHAIN MANAGEMENT

You need a specific type of fabric for your clothing line. Which supplier is MOST important to consider?

• The cheapest supplier.

• The supplier with the fastest delivery time.

• The supplier who can provide the exact fabric you need, even if it's slightly more expensive or has a longer lead time.

• The supplier with the best reputation on social media.

You're starting a small business and need to purchase packaging materials in bulk. What's the best approach?

• Order from the first supplier you find online.

• Compare prices and quality from at least three different suppliers.

• Only consider suppliers located within your city to minimize shipping costs.

• Choose the supplier with the most attractive website.

A supplier offers you a significantly lower price than competitors. What should you do?

• Immediately place a large order.

• Investigate the supplier's reputation and verify their claims.

• Assume it's a great deal and don't ask questions.

• Only consider the price and ignore other factors.

You've received a shipment of goods, and some are damaged. What's the best course of action?

• Accept the damaged goods and hope for the best.

• Immediately contact the supplier and document the damage with photos and videos.

• Ignore the damage and use the undamaged goods.

• Post a negative review online before contacting the supplier.

Before signing a contract with a new supplier, what's the MOST important thing to do?

• Sign the contract quickly to secure the deal.

• Trust the supplier's word and skip reviewing the contract.

• Only focus on the price and delivery dates.

• Carefully read and understand the terms and conditions.

Your company relies solely on one supplier for a crucial component. What's the biggest risk, and how can it be mitigated?

• Higher production costs; negotiate lower prices.

• Supplier bankruptcy; diversify your supplier base.

• Delayed shipments; improve communication.

• Lower quality components; implement stricter quality control.

A major port strike is anticipated. What proactive step could minimize disruption to your supply chain?

• Increase marketing efforts.

• Increase production.

• Diversify shipping routes and modes of transportation.

• Reduce inventory levels.

A supplier's factory is located in an area prone to earthquakes. What risk mitigation strategy is most appropriate?

• Ignore the risk; earthquakes are unpredictable.

• Secure insurance.

• Develop a contingency plan with alternative suppliers and/or stockpiling.

• Move your headquarters.

A new trade war is escalating, impacting the cost of imported materials. Which action would best mitigate this risk?

• Wait for the situation to resolve itself.

• Explore hedging strategies or alternative sourcing locations.

• Increase prices to consumers.

• Reduce production.

A supplier consistently fails to meet agreed-upon delivery deadlines. What's the most effective way to address this risk?

• Accept the delays; it's beyond your control.

• Implement stricter contract terms and performance monitoring.

• Switch to a different supplier immediately.

• Ignore the issue; it will likely resolve itself.