Question

The risk of price volatility can be addressed by which of the following?

a. Part standardization b. Contract language c. Supplier segmentation d. Supplier selection e. Supplier monitoring

The purchase of future contracts is also referred to as what?

a. Backward buying b. Forward integration c. Outsourcing d. Postponement e. Hedging

In which step of the risk management process do you classify risks from trivial to severe?

a. Risk consequence b. Risk identification c. Risk mitigation d. Risk exposure e. Risk monitoring

What is the rate of change in an industry called?

a. Velocity b. Clockspeed c. Efficiency d. Swiftness e. Speed

Delaying the final production of a product to a point that is as late as possible is referred to as what?

a. Near-sourcing b. Postponement c. Supplier segmentation d. Hedging e. Part standardization

What of the following is an objective of lean production?

a. To reduce supply disruptions b. To become more innovative c. To eliminate waste, including to strive for zero inventory d. To mitigate the risk of global sourcing e. To aim for greater diversification

Answer 1

a. Part standardization is the one by which the risk of price volatility can be addressed by. Whereas the remaining ones are not relevant in this context.

e. Hedging is the term that is also used for the purchase of future contracts. Whereas the remaining terms are used in other contexts.

d. Risk exposure is the step of the risk management process do you classify risks from trivial to severe. Whereas the remaining steps are not appropriate in this context.

b. Clockspeed is the term that is used as the rate of change in an industry. Whereas the remaining terms are not applicable in this context.

b. Postponement is the term which is used for delaying the final production of a product to a point that is as late as possible. Whereas the remaining terms are used in different contexts.

c. To eliminate waste, including to strive for zero inventory is an objective of lean production. Whereas the remaining ones are not relevant to be termed as an objective of lean production.

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