Supply Chain & Strategy Flashcards
7 cards from real APICS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Supply Chain & Strategy flashcards as text
When comparing 'functional products' to 'innovative products,' functional products typically require:
Answer: Efficient supply chains focused on low cost
Functional products with stable, predictable demand are best served by efficient supply chains that minimize cost rather than maximize responsiveness.
The primary purpose of a Sales and Operations Planning (S&OP) process is to:
Answer: Align supply and demand plans at an aggregate level across the business
S&OP creates a single, integrated plan that balances demand and supply at an aggregate level, aligning cross-functional teams on business goals.
Which supply chain risk mitigation strategy involves maintaining relationships with multiple suppliers for the same component?
Answer: Dual/multi-sourcing
Dual or multi-sourcing reduces supply disruption risk by spreading procurement across two or more qualified suppliers.
In supply chain management, 'total cost of ownership' (TCO) includes:
Answer: All costs associated with acquiring, using, and disposing of a product or service
TCO captures the full lifecycle cost including acquisition, operation, maintenance, and disposal costs beyond just the purchase price.
A 'hub-and-spoke' distribution network is most advantageous when:
Answer: Consolidating freight reduces transportation costs for many small shipments
Hub-and-spoke networks consolidate shipments at central hubs, reducing per-unit transportation costs for networks with many small, dispersed shipments.
Which of the following is a key benefit of implementing Vendor Managed Inventory (VMI)?
Answer: Supplier manages replenishment, reducing the customer's ordering burden and often improving in-stock rates
In VMI, the supplier takes responsibility for managing and replenishing inventory at the customer's location, improving service levels while reducing the customer's administrative burden.
In supply chain strategy, 'decoupling point' refers to:
Answer: The inventory point that separates make-to-stock from make-to-order operations
The decoupling point (also called the customer order decoupling point) separates the part of the supply chain driven by forecasts from the part driven by actual customer orders.