_____ allows a buying organization to react more quickly when supply chain risk events occur by already having previously prepared plans and proposed responses in place in advance of the actual risk event.
A) Hedging
B) Use of third party intermediaries
C) Multiple sourcing
D) Scenario analysis
E) None of the above.

Question

Quizplus · Accepted Answer

Scenario analysis involves preparing plans and proposed responses in advance of risk events by anticipating various possible scenarios and their potential impact. This allows the buying organization to react quickly and effectively when a risk event occurs. Hedging, use of third party intermediaries, and multiple sourcing do not necessarily involve preparing plans and proposed responses in advance of risk events.

_____ Allows a Buying Organization to React More Quickly When