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L5M2 Learning Engine - Standard L5M2 Answers

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CIPS Managing Supply Chain Risk Sample Questions (Q23-Q28):

NEW QUESTION # 23
Which of the following risks would likely be tolerated by a company?

  • A. no risks should be tolerated
  • B. opportunities which are low risk and low impact
  • C. opportunities which are high risk and low impact
  • D. opportunities which are low risk and high impact

Answer: B

Explanation:
Explanation
Low risk and low impact should be tolerated. This is from the Probability and Impact Matric from p.122. The other two options should be either transferred or treated.


NEW QUESTION # 24
Which of the following are benefits of ISO28000? Select TWO.

  • A. increased market share
  • B. cost saving
  • C. decreased legal costs
  • D. competitive advantage

Answer: B,D

Explanation:
Explanation
Advantages of ISO28000 are competitive advantage and cost savings. The textbook explains that cost savings come through a reduction in security incidents. For more info on ISO28000 see p. 141


NEW QUESTION # 25
Kieran works in the manufacturing industry and his company have just implemented LEAN production processes. Will this increase or decrease the risks in relation to security of supply?

  • A. decrease security of supply risks as there will be increased efficiencies
  • B. increase security of supply risks as there is less buffer stock held on site
  • C. increase security of supply risks as this is a tried and tested risk reducing process
  • D. decrease security of supply risks as there is less buffer stock

Answer: B

Explanation:
Explanation
2 'increase security of supply risks as there is less buffer stock held on site' is the correct answer. With Lean manufacturing there is little or no buffer stock held. This means that if a supplier doesn't deliver on time, the whole manufacturing process will have to come to a stop until new supplies arrive. A risk of Lean Manufacturing is that you become too reliant on suppliers, and if there is a scarcity of resources or an issue with the supply chain, you are more exposed. See p.26-27 for more information on Security of Supply Risks.


NEW QUESTION # 26
Which of the following will you put into box 1?

  • A. strategic
  • B. operational
  • C. intellectual property
    (Correct)
  • D. environment

Answer: C

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
L5M2-75af8987be15361d70a12ede1d5e5332.jpg


NEW QUESTION # 27
Which of the following is not a benefit of having a contingency plan?

  • A. greater resilience to force majeure events
  • B. increased staff morale
  • C. increased profits
  • D. competitive advantage

Answer: C

Explanation:
Explanation
Contingency plans won't increase your profit, but they will do the other three things. This is from p.109-110 of the study guide


NEW QUESTION # 28
......

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