Supply Chain Design Strategy Flashcards

The SCOR model's 'Plan' process includes which of the following activities?

Answer: Balancing supply and demand and establishing sourcing, production, and delivery plans

The SCOR Plan process covers demand/supply balancing and the establishment of integrated operational plans.

A company with a make-to-stock (MTS) strategy primarily uses which input to drive production?

Answer: Demand forecasts

MTS production is triggered by demand forecasts rather than actual customer orders.

Which supply chain design approach is most suitable when customer segments have significantly different service requirements?

Answer: Segmented supply chain with tailored strategies per segment

Segmented supply chains tailor cost and service levels to the distinct needs of each customer group.

Total landed cost analysis in supply chain design includes which of the following?

Answer: Purchase price, transportation, duties, insurance, and handling costs

Total landed cost captures all costs incurred to get a product to its destination, including duties and handling.

A company moves from a decentralized inventory model to a centralized one. The most likely outcome is:

Answer: Lower total inventory through risk pooling

Centralization leverages risk pooling, which reduces total safety stock needed across the network.

Which supply chain strategy is Fisher's framework most associated with?

Answer: Matching supply chain type (efficient vs. responsive) to product type (functional vs. innovative)

Fisher's framework advises matching an efficient chain to functional products and a responsive chain to innovative products.

In a make-to-order (MTO) environment, the customer order decoupling point (CODP) is located:

Answer: At the raw material stage, before production begins

In MTO, production begins only after a customer order is received, placing the CODP at raw materials.