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Supply Chain Strategy Flashcards

7 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Supply Chain Strategy flashcards as text

  1. A company wants to compete on rapid customization and short lead times. Which supply chain strategy best supports this goal?

    Answer: Agile supply chain

    An agile supply chain is designed for speed and flexibility, enabling rapid response to custom orders and volatile demand.

  2. The concept of 'postponement' in supply chain strategy involves:

    Answer: Deferring final product differentiation until demand is known

    Postponement delays value-added activities (like final assembly or labeling) until actual customer demand is confirmed, reducing the risk of mismatched inventory.

  3. Which metric best captures the end-to-end efficiency of a supply chain from cash outlay to cash receipt?

    Answer: Cash-to-cash cycle time

    Cash-to-cash cycle time measures the days between paying for raw materials and receiving payment from customers, reflecting overall supply chain efficiency.

  4. A firm sources a critical component from a single supplier in a region prone to natural disasters. Which strategy would best mitigate this supply risk?

    Answer: Dual sourcing from geographically dispersed suppliers

    Dual sourcing from geographically dispersed suppliers reduces concentration risk, ensuring supply continuity if one source is disrupted.

  5. In the SCOR model, the 'Source' process category primarily refers to:

    Answer: Procuring goods and services to meet planned demand

    The 'Source' process in SCOR encompasses procurement activities—ordering, receiving, and verifying the goods and services needed.

  6. Which of the following best describes a 'functional' product in Fisher's supply chain framework?

    Answer: A product with stable, predictable demand and long life cycles

    Fisher's framework classifies functional products as those with stable demand, long life cycles, and low margins—suited for efficient supply chains.

  7. A supply chain manager is evaluating whether to insource or outsource a manufacturing process. Which factor most strongly favors insourcing?

    Answer: The process is core to the firm's competitive differentiation

    When a process is central to a company's competitive advantage, insourcing protects proprietary know-how and strategic control.