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A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
The purpose of price differentiation is to:
In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
The practice of supply chain members acting in close collaboration while retaining independent ownership is known as:
For an item with high profit impact and low supply risk, what would be a likely procurement strategy to support the overall supply strategy?
Which of the following elements typically is considered to be an output of demand planning?
Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:
A company considers moving a portion of its production to a distant country to support a major customer. Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?
Which of the following types of risk typically would be most difficult to plan for and mitigate?

Question 447 - CSCP discussion

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A company considers moving a portion of its production to a distant country to support a major customer. Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?

A.
Expanding the customer base globally
Answers
A.
Expanding the customer base globally
B.
Reducing the global work force
Answers
B.
Reducing the global work force
C.
Reducing prices of all products
Answers
C.
Reducing prices of all products
D.
Adding features for all products
Answers
D.
Adding features for all products
Suggested answer: A

Explanation:

Risk Mitigation in Global Economic Downturn: Diversification is a key strategy to mitigate financial risk during economic downturns.

Actions Considered:

Expanding the Customer Base Globally: Diversifies revenue streams, reducing dependency on any single market, thus spreading risk.

Reducing the Global Workforce: May reduce costs but doesn't address revenue risks and could harm operational capacity.

Reducing Prices of All Products: Could lead to decreased margins and isn't sustainable long-term.

Adding Features for All Products: Increases costs and may not align with market demand during a downturn.

Conclusion: Expanding the customer base globally is the most effective action to mitigate financial loss by spreading revenue sources and reducing dependency on a single market.

'Global Supply Chain Management: Leveraging Processes, Measurements, and Tools for Strategic Corporate Advantage' by G. Tomas M. Hult, David J. Ketchen Jr., and Elnora W. Stuart.

APICS Dictionary, 16th Edition.

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asked 16/09/2024
marco damone
41 questions
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