CBS CBS Supply Chain & Operations Strategy 2

Question 1

Nearshoring as an operations strategy means:

Accepted Answer

Relocating operations to a nearby country, often in the same region

Answer

Nearshoring relocates operations to a nearby country, offering a balance between cost savings and shorter supply chains compared to offshoring.

Question 2

The bullwhip effect in supply chain management describes:

Accepted Answer

Amplification of demand variability as orders move up the supply chain

Answer

The bullwhip effect occurs when small fluctuations in consumer demand get amplified at each upstream stage of the supply chain, leading to large swings in orders.

Question 3

In operations strategy, 'capacity utilization' refers to:

Accepted Answer

The percentage of total production capacity actually being used

Answer

Capacity utilization measures how efficiently a company uses its available production capacity, expressed as a percentage of maximum output.

Question 4

A make-or-buy decision involves determining whether to:

Accepted Answer

Produce a component internally or purchase it from a supplier

Answer

A make-or-buy decision weighs the costs and strategic benefits of producing something in-house versus outsourcing it to an external supplier.

Question 5

Which operations concept focuses on eliminating waste (muda) and continuously improving processes?

Accepted Answer

Lean manufacturing

Answer

Lean manufacturing, rooted in the Toyota Production System, focuses on eliminating waste in all forms to increase value and efficiency.

(CBS) Certified Business Strategist Practice Test

(CBS) Certified Business Strategist Practice Test

CBS CBS Supply Chain & Operations Strategy 2