Question

Which of the following statements is true?

a. there is a great deal of apathy in supply risk management
b. most companies do a good job quantifying risks when outsourcing production
c. companies are well versed in supply chain risk management
d. most supply chains are structured in such a way that risks would not impact them
e. supply chain risk management has always been a top priority for companies

Answer 1

None of the statements are entirely true. Companies face challenges in managing supply chain risks, especially with increasing globalization and outsourcing. Technology advances help, but labor rights and globalization are critical factors.

Step-by-step explanation:

None of the listed statements are fully true. In reality, each business and situation is unique, and broad generalizations about supply chain risk management cannot be made categorically. Nevertheless, a more accurate statement, in general, may be that companies often face challenges when it comes to effectively managing supply chain risks, especially amid increasing globalization and outsourcing.

While technology and policy advances have provided some remedies to supply chain issues, labor rights, and the dynamics of international agreements and national policies play a significant role in shaping effective supply chain risk management practices. Supervisory and managerial positions, as well as jobs requiring specialized knowledge like computer programming, are not immune to the impacts of global outsourcing and industry consolidation. Additionally, stock market risks associated with Initial Public Offerings (IPOs) reflect the inherent uncertainties in supply chain and business operations.