Practice Quiz

Supply Chain Manager Exam Prep

Category - Risk

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What best describes the term inertia?
  1. Risks due to lack of responsiveness to changing environmental conditions.
  2. Risks caused by shipment problems.
  3. Risks caused by the holding up of merchandise on docks.
  4. Risks due to lack of transportation and labor.
Explanation
Answer: A - Inertia are risks are due to a lack of responsiveness to changing environmental conditions and market signals. Flexibility may be sacrificed, especially in global supply chains, where there may be an emphasis on cost reduction.
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