APICS Certified in Transformation for Supply Chain (CTSC) CTSC Question # 1 Topic 1 Discussion
CTSC Exam Topic 1 Question 1 Discussion:
Question #: 1
Topic #: 1
When developing risk plans for supply chain segments, which of the following product categories should have the most complete and thorough risk mitigation plans?
A.
Important products that require ocean transport for delivery
B.
Important products that must be kept cold
C.
Important products where there is a single available supplier
According to the ASCM CTSC Exam Content Manual, one of the factors that influences the risk exposure of a supply chain segment is the availability of alternative sources of supply (p. 20). If there is only one available supplier for an important product, the supply chain segment is more vulnerable to disruptions and uncertainties, such as supplier failure, quality issues, price fluctuations, or geopolitical events. Therefore, this product category should have the most complete and thorough risk mitigation plans, which may include strategies such as developing backup suppliers, increasing inventory buffers, diversifying sourcing locations, or implementing contractual agreements.
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