CSCP Global Supply Chain Networks Questions and Answers Flashcards

A global apparel maker ships undyed garments to regional centers and dyes them only after local demand is known. Which strategy is this?

Answer: Postponement

Postponement delays final product differentiation until demand is clearer, reducing finished-goods inventory risk.

Under the Incoterms 2020 rule FOB, when does risk transfer from seller to buyer?

Answer: When goods are placed on board the vessel at the named port of shipment

FOB (Free On Board) transfers risk once goods are loaded on board the vessel at the port of shipment.

What is a primary financial benefit of using a U.S. Foreign Trade Zone (FTZ)?

Answer: Deferral or elimination of customs duties on goods re-exported or processed in the zone

Goods in an FTZ are treated as outside U.S. customs territory, so duties are deferred or avoided if re-exported.

A U.S. company moves production from Asia to Mexico mainly to shorten lead times. This is best described as:

Answer: Nearshoring

Nearshoring relocates operations to a nearby country to reduce lead time and transport complexity.

The center-of-gravity method in network design is used to:

Answer: Locate a facility that minimizes volume-weighted transportation distance

Center-of-gravity uses coordinates weighted by shipment volume to find a cost-minimizing facility location.

Which network practice moves inbound goods directly to outbound trucks with little or no storage?

Answer: Cross-docking

Cross-docking transfers products from receiving to shipping docks, minimizing storage time and handling.

Which action most directly reduces the bullwhip effect across a global supply chain?

Answer: Sharing point-of-sale demand data with upstream partners

Visibility into actual end-customer demand reduces upstream forecast distortion and order amplification.