Managing supply chain risks includes which of the following activities?

Managing supply chain risks includes which of the following activities?
A . Developing alternatives to key suppliers
B . Setting aside funds for disruption-recovery efforts
C . Charging each supply chain partner a portion of risk cost
D . Creating extra inventory to cover disruptions in the supply chain

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Answer: A

Explanation:

Managing supply chain risks includes developing alternatives to key suppliers. This ensures that if one supplier faces disruption, there are other options available to maintain the supply chain continuity. Diversifying the supplier base reduces dependency on a single source and enhances resilience.

Setting aside funds for disruption-recovery efforts is a financial strategy, not a supply chain management activity.

Charging each supply chain partner a portion of risk cost may not be feasible or effective in managing risks.

Creating extra inventory to cover disruptions is a common strategy but it is not a proactive risk management activity like developing alternative suppliers.

Reference: Chopra, S., & Sodhi, M. S. (2004). "Managing Risk to Avoid Supply-Chain Breakdown." Harvard Business Review.

Tang, C. S. (2006). "Perspectives in Supply Chain Risk Management."

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