Which statement describes the purpose of contingency planning in supply chain management?

• A. To increase marketing spend
• B. To reduce production costs
• C. To prepare for potential disruptions and maintain operations
• D. To shorten product design cycles

Answer: (C)

Contingency planning in the supply chain is about resilience and preparedness for disruptions, so operations can keep running even when problems occur. It involves identifying potential events that could interrupt supply—like supplier failures, factory shutdowns, port delays, or transportation strikes—and having ready actions to implement. This includes having alternative suppliers, safety stock, diversified delivery routes or modes, flexible production options, and clear communication plans with partners. The goal is to minimize downtime and maintain product flow to meet customer needs despite disruptions. The other options miss this focus: increasing marketing spend targets demand generation, not continuity; reducing production costs focuses on efficiency rather than preparedness; and shortening product design cycles relates to development speed, not resilience to interruptions.