Question

Which of the following would be considered a Supply Chain Risk Management activity?

1) Increasing safety stock
2) Diversify the supply base
3) Utilize a supply chain IT system
4) All of these

Answer 1

Supply Chain Risk Management (SCRM) activities are strategies and processes implemented by organizations to identify, assess, and mitigate risks in their supply chain. All of the given options would be considered SCRM activities: increasing safety stock, diversifying the supply base, and utilizing a supply chain IT system.

Step-by-step explanation:

Supply Chain Risk Management (SCRM) activities are strategies and processes implemented by organizations to identify, assess, and mitigate risks in their supply chain. These activities ensure the smooth functioning of the supply chain and help in avoiding disruptions and uncertainties.

Out of the given options, all of these would be considered SCRM activities. Let's look at each option:

1. Increasing safety stock helps in reducing the risk of stockouts or disruptions caused by supplier delays or unforeseen events.
2. Diversifying the supply base helps in reducing dependency on a single supplier, thus mitigating the risk of supply disruptions.
3. Utilizing a supply chain IT system enables organizations to track and manage their supply chain processes more efficiently, thereby reducing the risk of operational errors and delays.