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ISM LEAD Exam - Topic 4 Question 10 Discussion

Actual exam question for ISM's LEAD exam
Question #: 10
Topic #: 4
[All LEAD Questions]

A supply manager conducts a risk assessment of the company's top five suppliers. One of these suppliers---a sole source of an integral component---has just one database location and no cloud storage. Any calamity could put supply of the component at risk. In this situation, which of the following is the BEST long-term course of action for the supply manager to take?

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Suggested Answer: C

Risk Assessment Overview: The sole source supplier has a single database location, creating a risk for the supply of an integral component.

Long-term Solution: Reducing the component's uniqueness to allow for alternate sources is a strategic approach. It mitigates the risk associated with dependency on a single supplier and enhances supply chain resilience.

Collaborative Approach: Working with engineering to modify the component design ensures compatibility with multiple suppliers, broadening the supplier base and reducing supply chain vulnerability.

Importance of Alternative Sources: Diversifying the supplier base is crucial in risk management to avoid disruptions caused by supplier-specific issues.

Reference: Supply chain risk management literature, such as 'The Resilient Enterprise' by Yossi Sheffi and guidelines from the Institute for Supply Management (ISM), supports the strategy of reducing dependency on single suppliers through component standardization.


by Marsha at Sep 18, 2024, 06:25 PM

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Isreal
6 months ago
Wait, why isn't there already a backup? This is concerning.
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Eun
6 months ago
Reducing uniqueness is a solid idea, more options are always better!
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Maile
6 months ago
Collaborating with IT sounds smart, but will they actually do it?
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Olive
7 months ago
Insourcing could be a risky move, not sure it's the best option.
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Annett
7 months ago
Definitely need a backup database for that supplier!
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Galen
7 months ago
Collaborating with IT to expand database capacity sounds practical, but I wonder if that really addresses the core issue of dependency on a sole supplier.
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Audra
7 months ago
I practiced a similar question where we had to evaluate supplier risks, and I feel like insourcing might not be the best long-term solution, so I’m leaning away from A.
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Jess
8 months ago
I'm not entirely sure, but I think working with engineering to reduce uniqueness could help us find alternative suppliers, which might be option C?
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Mose
8 months ago
I remember discussing the importance of having backup systems in place, so option D seems like a solid choice.
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Casie
8 months ago
Revising the contract to require a backup database facility seems like the most straightforward option. I'll focus on evaluating the supplier's ability to implement that.
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Mammie
8 months ago
Reducing the component's uniqueness to allow for alternate sources - that could be an interesting approach. I'll need to dig into the engineering details on that one.
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Oliva
8 months ago
Collaborating with IT to offer database capacity sounds like a practical idea. I'll make sure to consider the feasibility and costs involved.
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Wilburn
8 months ago
Hmm, insourcing the component could be a good long-term solution, but it might be complex to implement. I'll have to think that through.
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Carline
8 months ago
This seems like a tricky question. I'll need to carefully weigh the pros and cons of each option.
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Shaquana
8 months ago
This seems like a good opportunity to apply my knowledge of SQL syntax. I'll carefully consider each option and choose the one that best matches the requirement.
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Barney
2 years ago
This question is so dry, I could use a glass of water. But option D is the clear choice - gotta protect that supply chain, even if it costs a little extra.
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Sharika
2 years ago
True, better safe than sorry when it comes to such a critical supplier.
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Ernie
2 years ago
I agree, it may cost more but it's worth it to ensure continuity in production.
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Teresita
2 years ago
Option D is definitely the way to go. Can't risk losing that component supply.
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Rikki
2 years ago
Hmm, I'm leaning towards A. Insourcing could give us more control and flexibility. Who needs a sole source supplier anyway? Let's bring it in-house!
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Omega
2 years ago
I agree with Mindy, having the supplier obtain a backup database facility would mitigate the risk.
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Jodi
2 years ago
B is the way to go. Leveraging existing IT infrastructure is smart and cost-effective. Plus, the supplier won't have to do all the heavy lifting.
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Yoko
2 years ago
Collaborating with IT is a strategic move that can prevent potential disruptions in the supply chain.
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Isabelle
2 years ago
It's a practical solution that benefits everyone involved. Good call on leveraging existing resources.
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Annita
2 years ago
I agree, collaborating with IT is a smart move. It minimizes risk and ensures continuity.
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Marnie
2 years ago
B is definitely the best option. It's a win-win for both parties.
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Desirae
2 years ago
But wouldn't it be better to collaborate with IT to offer database capacity at one of the firm's locations? That way we have more control over the situation.
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Laurel
2 years ago
I'd go with C. Reducing the component's uniqueness opens up the field and diversifies the supply chain. Efficiency and redundancy, that's the key!
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Mindy
2 years ago
I think the best long-term course of action is to revise the contract with the supplier.
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Carylon
2 years ago
Option D for sure! Backup database facility is a no-brainer for a sole source supplier. Gotta have that insurance, you know?
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Hildred
2 years ago
Those could be good short-term solutions, but having a backup database facility is essential for long-term risk management.
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Goldie
2 years ago
But wouldn't it be better to also explore other options like insourcing or collaborating with IT?
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Andra
2 years ago
I agree, having a backup database facility is crucial for ensuring continuity of supply.
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Cassi
2 years ago
Option D for sure! Backup database facility is a no-brainer for a sole source supplier. Gotta have that insurance, you know?
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