L4M2 practice question 3 of 30

Which of the following problems may be identified as open-ended problems? Select TWO that apply:

Full set: 301 questions
Answer options
A: Shortage of key medicines in healthcare industry
B: A cyber attack takes down whole company’s IT system
C: Engine failures cause flight cancellations.
D: Logistics costs incur a large portion in wholesale prices Correct answer
E: The suppliers don’t comply with the company’s policy on underage labour. Correct answer
Correct Answer:
D. Logistics costs incur a large portion in wholesale prices; E. The suppliers don’t comply with the company’s policy on underage labour.
Explanation

Open-ended problems, often referred to as ill-structured or 'wicked' problems, are complex issues that lack a clear, single solution. They typically involve multiple stakeholders, conflicting objectives, and require a strategic, multi-faceted approach rather than a straightforward technical fix. Logistics costs (D) represent a strategic challenge with numerous potential solutions (e.g., network redesign, mode of transport changes, supplier collaboration), none of which is singularly "correct." Similarly, supplier non-compliance with ethical policies (E) is a complex issue involving corporate social responsibility, legal risk, and brand reputation, requiring a nuanced strategy that could range from supplier development to divestment. Both scenarios fit the definition of an open-ended problem.

Why Incorrect

A. Shortage of key medicines is a critical supply chain disruption, but the problem is well-defined (a specific shortage) with a clear goal (restore supply), making it a more closed-ended problem.
B. A cyber attack is a technical crisis. While severe, it is a well-defined problem with a clear, immediate objective: restore and secure the IT systems.
C. Engine failures are specific technical and safety problems. The resolution path, involving investigation, repair, and preventative maintenance, is structured and procedural, not open-ended.

References

1. CIPS (Chartered Institute of Procurement & Supply). (2018). L4M2: Defining Business Need. Profex Publishing. In discussions on problem-solving, the guide distinguishes between operational, well-defined problems and strategic, ill-structured problems. Issues like strategic cost management (D) and ethical compliance (E) are presented as complex, open-ended challenges requiring comprehensive analysis and creative solutions, unlike technical failures (B, C) which have more direct solution paths. (Specific reference typically found in modules covering specification development and stakeholder management).

2. Jonassen, D. H. (2000). "Toward a Design Theory of Problem Solving". Educational Technology Research and Development, 48(4), 63–85. https://doi.org/10.1007/BF02300500. This academic paper defines ill-structured (open-ended) problems as having "unclear goals and incomplete information" and possessing "multiple solutions, solution paths, or no solutions at all" (p. 68). The challenges in options D and E align perfectly with this definition, whereas A, B, and C represent more well-structured problems with clearer goals and solution parameters.

3. Lysons, K., & Farrington, B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. Chapter 15, "Ethical and Sustainable Procurement," discusses the complexity of issues like child labour (relevant to option E), framing them as multifaceted problems requiring ongoing management, audits, and strategic decisions rather than a single, simple fix. This aligns with the nature of open-ended problems.

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