CPIM Supply Chain Strategy 2

Question 1

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

Accepted Answer

Agile supply chain

Answer

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

Question 2

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

Accepted Answer

Deferring final product differentiation until demand is known

Answer

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

Question 3

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

Accepted Answer

Cash-to-cash cycle time

Answer

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

Question 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?

Accepted Answer

Dual sourcing from geographically dispersed suppliers

Answer

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

Question 5

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

Accepted Answer

Procuring goods and services to meet planned demand

Answer

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

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Supply Chain Strategy 2