Certified Supply Chain Professional CSCP Practice Certified Supply Chain Professional (CSCP) Supply Chain Design Strategy 1

Question 1

A company selling seasonal fashion items wants to minimize the risk of overstock and stockouts. Which supply chain design strategy best addresses this challenge?

Accepted Answer

Agile supply chain with flexible, demand-driven production

Answer

Lean supply chain with fixed production schedules

Answer

Fully integrated vertical supply chain

Answer

Low-cost country sourcing with bulk ordering

Question 2

When designing a global supply chain network, which of the following best describes a 'total cost of ownership' (TCO) approach?

Accepted Answer

Evaluating all direct and indirect costs over the full lifecycle of a sourcing decision

Answer

Selecting suppliers based solely on unit purchase price

Answer

Minimizing transportation spend by consolidating all shipments to one carrier

Answer

Focusing exclusively on labor cost differences between countries

Question 3

A manufacturer decides to place a distribution center closer to its largest customer cluster to reduce lead times. This decision is primarily driven by which supply chain design principle?

Accepted Answer

Demand-side proximity

Answer

Risk pooling

Answer

Postponement

Answer

Vertical integration

Question 4

Which supply chain design concept reduces safety stock requirements by combining inventory for multiple locations into a single centralized pool?

Accepted Answer

Risk pooling

Answer

Cross-docking

Answer

Make-to-order production

Answer

Milk-run routing

Question 5

In supply chain network design, 'decoupling point' refers to:

Accepted Answer

The point in the supply chain where product flow switches from push to pull

Answer

The moment a shipment crosses an international border

Answer

The boundary between a company's internal and outsourced operations

Answer

The stage at which quality inspection separates conforming from non-conforming goods

Question 6

A company is evaluating whether to source a critical component from a single supplier or multiple suppliers. The primary supply chain design trade-off in this decision is:

Accepted Answer

Price leverage and simplicity versus supply disruption risk

Answer

Transportation mode selection versus inventory carrying cost

Answer

Lead time reduction versus order frequency

Answer

Warehouse automation versus manual picking accuracy