Microsoft MB-335 Microsoft Dynamics 365 Supply Chain Management Functional Consultant Expert 07 31Oct2024 - Practice Quiz

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Question 1 of 30

A manufacturing company is assessing its supply chain risks to enhance resilience against potential disruptions. The company has identified three primary risk factors: supplier reliability, transportation delays, and demand fluctuations. To quantify these risks, they assign a probability score (from 0 to 1) and an impact score (from 1 to 10) for each risk factor. The scores are as follows: Supplier reliability has a probability of 0.4 and an impact of 8; transportation delays have a probability of 0.3 and an impact of 6; demand fluctuations have a probability of 0.5 and an impact of 7. To calculate the overall risk score for each factor, the company uses the formula:

\text{Risk Score} = \text{Probability} \times \text{Impact} $$

t is the overall risk score for demand fluctuations, and how does it compare to the other risk factors?

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