Learn how to classify the risk of returned contaminated raw materials according to the APICS CSCP certification exam. Understand the differences between supply, product liability, business continuity, and environmental risks.
Table of Contents
Question
A company returned several shipments of contaminated raw material. Which risk classification best describes this event?
A. Supply
B. Product liability
C. Business continuity
D. Environmental
Answer
A. Supply
Explanation
Returning several shipments of contaminated raw material is best classified as a supply risk. Supply risks involve potential disruptions or issues with the availability, quality, or delivery of raw materials and components from suppliers. Contaminated raw materials pose a direct risk to the supply chain by introducing substandard or unusable materials into the production process, potentially leading to production delays, quality issues, and increased costs. This risk directly impacts the company’s ability to maintain a steady and reliable flow of quality raw materials necessary for its operations.
APICS Certified Supply Chain Professional CSCP certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the APICS Certified Supply Chain Professional CSCP exam and earn APICS Certified Supply Chain Professional CSCP certification.