CBS CBS Supply Chain & Operations Strategy 1

Question 1

Which supply chain strategy prioritizes cost efficiency by producing goods based on forecasted demand?

Accepted Answer

Push strategy

Answer

A push strategy produces inventory based on demand forecasts, optimizing cost efficiency by manufacturing in advance of actual orders.

Question 2

Just-in-Time (JIT) inventory management aims to:

Accepted Answer

Receive goods only as they are needed in production

Answer

JIT minimizes inventory holding costs by scheduling deliveries to arrive precisely when needed in the production process.

Question 3

Vertical integration in operations strategy refers to:

Accepted Answer

A company owning multiple stages of its supply chain

Answer

Vertical integration occurs when a company controls multiple stages of its supply chain, from raw materials to distribution, reducing dependence on external suppliers.

Question 4

A key performance indicator (KPI) commonly used to measure supply chain efficiency is:

Accepted Answer

Perfect Order Rate

Answer

Perfect Order Rate measures the percentage of orders delivered on time, complete, undamaged, and with accurate documentation — a holistic supply chain efficiency metric.

Question 5

Which risk mitigation strategy involves sourcing the same component from multiple suppliers?

Accepted Answer

Multi-sourcing

Answer

Multi-sourcing distributes procurement across multiple suppliers to reduce the risk of supply disruption from any single source.

(CBS) Certified Business Strategist Practice Test

(CBS) Certified Business Strategist Practice Test

CBS CBS Supply Chain & Operations Strategy 1