Supply Chain & Strategy Flashcards

In the context of supply chain collaboration, 'Collaborative Planning, Forecasting, and Replenishment' (CPFR) is designed to:

Answer: Create a shared forecast between trading partners to align supply and demand plans

CPFR is a business practice that combines intelligence of multiple trading partners to improve planning accuracy and reduce supply chain variability through shared forecasting.

Which of the following best describes a 'make-to-order' supply chain strategy?

Answer: Production begins only after a confirmed customer order is received

Make-to-order (MTO) means production is triggered by actual customer orders, eliminating finished goods inventory risk at the cost of longer customer lead times.

A supply chain 'segmentation' strategy recognizes that:

Answer: Different customer segments or products require different supply chain approaches

Supply chain segmentation tailors service, cost, and responsiveness to different customer and product segments based on their unique needs and strategic importance.

Which of the following is a primary advantage of nearshoring over offshoring in supply chain strategy?

Answer: Shorter lead times, reduced transportation costs, and easier collaboration due to geographic proximity

Nearshoring moves operations to nearby countries, reducing lead times and transportation costs while enabling easier communication and collaboration compared to distant offshore locations.

In supply chain strategy, 'demand shaping' refers to:

Answer: Using pricing, promotions, or product substitution to influence customer demand toward available supply

Demand shaping uses commercial levers like pricing, promotions, and substitution to actively influence customer purchasing behavior to align with supply availability.

The primary goal of implementing a 'pull' replenishment system in a supply chain is to:

Answer: Trigger replenishment based on actual consumption, reducing overproduction and excess inventory

Pull systems replenish inventory based on actual demand signals, reducing waste from overproduction and excess inventory that characterize push-based systems.

When evaluating supply chain partners, 'supplier development' programs are intended to:

Answer: Proactively improve supplier capabilities to meet current and future supply chain requirements

Supplier development involves collaborative efforts to improve a supplier's processes, quality, delivery, and capabilities to meet the buying company's evolving needs.