2023
Unfortunately, not many supply chain metrics exist that can be effectively used to evaluate performance
within a company and for its supply chain partners. Answer - False
The Great East Japan Earthquake of 2011 was centered off of the Pacific coast of which region of Japan?
A) Kanto
B) Chubu
C) Tohoku
D) Kansai
E) Chugoku Answer - C
Which of the following statements is TRUE regarding the 2011 Tohoku earthquake and tsunami?
A) It devastated eastern sections of Japan.
B) Some manufacturers around the globe had been relying exclusively on suppliers located in the
affected zones.
C) Japanese-built vehicle outputs for Toyota and Honda were down more than 60% in the month
following the disaster.
D) Manufacturers in several industries worldwide took 6 months or longer before they saw their supply
chains working normally again.
E) All of the above are true. Answer - E
Firms often use multiple suppliers for important components to mitigate the risks of total supply
disruption. Answer - True
In the disaster risk model, as the probability of a super-event (S) increases, the advantage of utilizing
multiple suppliers increases. Answer - False
, What technique does the text use to determine the best number of suppliers to manage disaster risk?
A) linear programming
B) factor weighting technique
C) transportation model
D) decision tree
E) simulation Answer - D
4) Which of the following is NOT an element of the disaster risk decision tree model?
A) the buyer's financial loss incurred in a supply cycle if supplier i were disrupted
B) the marginal cost of managing a supplier
C) the buyer's financial loss incurred in a supply cycle if all suppliers were disrupted
D) the probability of a "super-event" that would disrupt all suppliers simultaneously
E) the probability of a "unique-event" that would disrupt only one supplier Answer - A
Consider the disaster risk decision tree model. Using the notation from the model, what is the expected
monetary value (cost) of choosing two suppliers?
A) 2C
B) [1-P(2)] × 2C + P(2) × (L + 2C)
C) 2C + SL
D) P(2) × 2C + [1-P(2)] × (L + 2C)
E) 2C + (S+U2)L Answer - B
Under the disaster risk decision tree model, which of the following conditions would create the HIGHEST
incentive to use MORE suppliers?
A) lower S, lower U
B) lower S, higher U
C) higher S, lower U
D) higher S, higher U
E) higher S, higher U, higher C Answer - B