ISM LEAD Exam - Topic 3 Question 30 Discussion

Actual exam question for ISM's LEAD exam

Question #: 30
Topic #: 3

A supply chain's stability, as well as its ability to continue business or recover from a major disruption, is BEST predicted by

Athe amount a primary supplier purchases from sub-tier suppliers

Bthe location of a primary supplier in relation to its sub-tier suppliers

Cthe financial strength of primary suppliers

Dhow a primary supplier manages its sub-tier suppliers

Show Suggested Answer

Suggested Answer: D

The stability and resilience of a supply chain are critical aspects that determine its ability to continue operations or recover from major disruptions. This can be predicted by several factors, but the management of sub-tier suppliers by a primary supplier stands out. Effective management of sub-tier suppliers ensures that the primary supplier maintains a robust and responsive supply chain network. This includes risk management, quality control, and communication strategies that ensure continuity and quick recovery in case of disruptions. This approach is supported by leadership and transformation management principles, which emphasize the importance of comprehensive oversight and proactive risk management across all levels of the supply chain. Reference from transformation management documents highlight that well-managed sub-tier relationships contribute significantly to supply chain resilience.

by Gilma at Nov 19, 2025, 12:00 PM

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Shawnta

1 month ago

Overall, I lean towards D. Good management can prevent issues.

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Virgie

2 months ago

A seems less relevant. It's about relationships, not just purchases.

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Sueann

2 months ago

C is crucial too. Strong finances mean better recovery.

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Elfriede

2 months ago

B could also be important. Location matters for disruptions.

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Annice

2 months ago

I agree, D shows proactive handling of risks.

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Xuan

2 months ago

I think D is the best choice. Management is key.

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Justine

2 months ago

Totally agree with D! Management is key in disruptions.

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Verlene

3 months ago

C is crucial too; strong finances can weather storms.

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Leontine

3 months ago

I think B is underrated; location matters a lot!

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Jerry

3 months ago

D) for sure. You can't have a strong chain without strong supplier relationships and oversight.

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Leonor

4 months ago

Haha, the answer is obviously D. How else would you predict supply chain stability? Supplier management is everything!

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Angella

4 months ago

B) the location of a primary supplier in relation to its sub-tier suppliers. Proximity is crucial for quick response times.

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Val

4 months ago

C) the financial strength of primary suppliers. If they're not financially stable, the whole chain is at risk.

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Gilma

4 months ago

D) how a primary supplier manages its sub-tier suppliers. This is the key to maintaining a stable supply chain.

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Tyra

4 months ago

I'm a bit confused; I thought the amount purchased from sub-tier suppliers could indicate stability, but now I'm questioning if that's really the best predictor.

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Delsie

4 months ago

I feel like financial strength is important, but it doesn't directly relate to stability in the same way that management does. So I lean towards D.

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Rikki

5 months ago

I remember a practice question that focused on supplier relationships, and it suggested that location could impact recovery times, so maybe B is also a contender.

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Jerilyn

5 months ago

I think the answer might be D because managing sub-tier suppliers seems crucial for stability, but I'm not entirely sure.

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Carmelina

5 months ago

Hmm, I'm not totally sure. I'm debating between B and C. The location of suppliers could be important, but the financial strength seems like it would be the BEST predictor. Gonna have to weigh the options carefully.

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Winifred

5 months ago

I'm a bit confused on this one. I'm not sure if the location of suppliers or how they manage sub-tiers is as important as their financial health. Gonna have to think it through.

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Elouise

5 months ago

D seems like the most logical choice.

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Vernell

6 months ago

Really? I’m surprised D is the best predictor.

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Jesusa

6 months ago

I feel pretty confident about this. The correct answer is D - how a primary supplier manages its sub-tier suppliers. That's gotta be the most important factor for supply chain stability.

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Viola

6 months ago

Okay, I've got a few ideas here. I'm leaning towards C - the financial strength of primary suppliers seems like it would be a key predictor of supply chain stability.

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