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Hypothesis 3: Insurance fraud. The deviation is a false flag to trigger a “constructive total loss” claim. The cargo is over-insured, and the ship’s owner is financially distressed. Impact: The automotive factory discovers its tier-3 supplier for microchips was on that vessel. With no chips, production halts for 11 days, triggering a $9.2 million loss and a force majeure declaration.

Grading rubric (brief)

Before diving into specific questions, you must understand the three pillars of any introductory SCM course. Most midterm questions fall into these categories:

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supply chain management midterm exam questions
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