Discuss APICS CTSC Exam Topic 1 Question 11

Which of the following examples represents a risk avoidance strategy?

APostponed product differentiation

BDelay of entry into a market or market segment

CMitigation of uncertain market events

DHedging procurement of raw materials

Suggested Answer: D

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, a thread diagram is a process view of the geographic map that illustrates the material flow, material strategy, and the planning process relationship1. A thread diagram shows the sequence of activities and decisions that are involved in transforming raw materials into finished products and delivering them to customers1. It also shows the locations of the facilities, the transportation modes, the inventory policies, and the planning horizons1. A thread diagram helps to identify the key drivers and constraints of the supply chain performance, and to evaluate the trade-offs and synergies among different supply chain components1.

1: https://www.ascm.org/ctsc-ecm/

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29 comments · newest first

Stanford 10 months ago

I thought hedging was more about managing risk than avoiding it?

Nichelle 11 months ago

Totally agree with B, it makes sense to wait it out.

Cathern 11 months ago

Wait, is postponing really a risk avoidance strategy? Seems risky to me!

Corrinne 11 months ago

Definitely B! Delaying entry is a classic avoidance tactic.

Latia 11 months ago

Risk avoidance is all about steering clear of potential issues.

Donte 12 months ago

I practiced a question similar to this, and I think delaying entry into a market could be a solid example of avoiding risk altogether.

Lennie 12 months ago

I feel like risk avoidance means completely steering clear of potential issues, which might not fit with hedging or mitigation strategies.

Rodrigo 12 months ago

I'm not entirely sure, but I remember something about postponing decisions to avoid risks. Could that be the postponed product differentiation?

Destiny 1 year ago

I think risk avoidance is about not taking risks at all, so maybe it's the delay of entry into a market?

Elke 1 year ago

I'm pretty sure the answer is B. Delaying entry into a market is a classic risk avoidance tactic - you're simply choosing not to take on that risk in the first place. The other options seem more like risk mitigation or transfer strategies.

Ming 1 year ago

Okay, I think I've got this. Delay of entry into a market or market segment seems like the clearest risk avoidance strategy here. It's about avoiding the risk of entering a new market altogether. The other options are more about managing or mitigating risks rather than outright avoiding them.

Kristofer 1 year ago

Hmm, I'm a bit unsure about this one. I know risk avoidance is about eliminating or reducing the likelihood of a risk, but I'm not totally confident which of these examples fits that definition best. I'll have to think it through.

Fidelia 1 year ago

This seems like a straightforward question about risk management strategies. I'll carefully review each option and think about which one best represents a risk avoidance approach.

Maile 1 year ago

Wait, I'm a bit confused. How does the fact that the returns are perfectly negatively correlated affect the expected return of the portfolio? I'll need to review my notes on portfolio theory.

Katlyn 1 year ago

Ugh, I always get confused about the different join types. I know inner joins are straightforward, but the outer joins always trip me up. I'll need to really focus on understanding the distinctions between left, right, and full outer joins before I attempt this question.

Nelida 1 year ago

I'm a bit confused about the options—option B sounds shady and not really what I associate with promotion, right?

Isabelle 1 year ago

Aha! I've got it. The answer is B) Delay of entry into a market or market segment. Waiting for the right moment to jump in is like a game of chess. You gotta be patient and make the smart move, even if it means postponing your grand plans.

Ligia 1 year ago

↳ replying to Isabelle

User 2: No, I believe it's B) Delay of entry into a market or market segment.

Yuette 1 year ago

↳ replying to Isabelle

User 1: I think the answer is A) Postponed product differentiation.

Aaron 1 year ago

I'm going with C) Mitigation of uncertain market events. Avoiding risk is great, but sometimes you need to take proactive steps to address potential issues. Mitigation is a key part of any risk management plan.

Linwood 1 year ago

I'm torn between B) and D) Hedging procurement of raw materials. Both seem like valid risk avoidance strategies, but I'm leaning towards D) since it's a more direct way of managing procurement risks.

Ciara 2 years ago

But delaying entry into a market like option B) could also help avoid risks by waiting for a better opportunity.

Tuyet 2 years ago

I disagree, I believe option D) Hedging procurement of raw materials is a better risk avoidance strategy.

Lizette 2 years ago

Hmm, I think B) Delay of entry into a market or market segment is the correct answer. It's a classic risk avoidance strategy to hold off on entering a new market until the uncertainties are reduced.

Silvana 1 year ago

↳ replying to Lizette

I think both delaying entry and hedging procurement are valid risk avoidance strategies.

Chauncey 1 year ago

↳ replying to Lizette

That's true, hedging procurement can help mitigate risks related to price fluctuations.

Reita 1 year ago

↳ replying to Lizette

But what about hedging procurement of raw materials? Wouldn't that also be a risk avoidance strategy?

Jacob 1 year ago

↳ replying to Lizette

I agree, delaying entry into a market is a good way to avoid risks.

Ciara 2 years ago

I think option A) Postponed product differentiation is a risk avoidance strategy.

APICS CTSC Exam - Topic 1 Question 11 Discussion