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

An agile supply chain is designed for responsiveness and flexibility, enabling rapid adjustments to volatile and unpredictable demand patterns — ideal for seasonal fashion where trends shift quickly.

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

TCO accounts for all costs associated with a sourcing or network decision — including quality, logistics, risk, duties, and carrying costs — rather than focusing narrowly on purchase price.

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

Locating facilities near key customers (demand-side proximity) reduces transportation time and cost while improving service levels, which is a core network design principle.

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

Risk pooling leverages statistical aggregation: when demand variability from multiple locations is combined, the coefficient of variation decreases, reducing the total safety stock needed.

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 decoupling point (also called the order penetration point) is where customer orders enter the supply chain, separating upstream push-based production from downstream pull-based fulfillment.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

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