CPIM Supply Chain Strategy 4

Question 1

In supply chain strategy, a 'decoupling point' separates:

Accepted Answer

Forecast-driven upstream activities from demand-driven downstream activities

Answer

The decoupling point is where inventory buffers demand uncertainty, with upstream operations driven by forecasts and downstream by actual orders.

Question 2

A company adopts a hub-and-spoke distribution network. What is the primary advantage of this design?

Accepted Answer

Consolidation of freight to reduce transportation costs

Answer

Hub-and-spoke networks consolidate shipments through central hubs, enabling full truckload shipments that reduce per-unit transportation costs.

Question 3

Which supply chain risk management strategy involves holding duplicate inventory at multiple locations?

Accepted Answer

Risk hedging

Answer

Risk hedging uses redundant inventory or capacity buffers across multiple locations to absorb supply or demand shocks.

Question 4

Strategic sourcing differs from traditional purchasing primarily in that it:

Accepted Answer

Takes a long-term, holistic view of supplier relationships and total value

Answer

Strategic sourcing evaluates suppliers on total value—quality, innovation, reliability, and cost—and builds collaborative long-term relationships.

Question 5

The primary purpose of Sales and Operations Planning (S&OP) in supply chain strategy is to:

Accepted Answer

Align supply capacity plans with demand plans across functional teams

Answer

S&OP aligns sales, operations, finance, and supply chain into a single integrated plan to balance supply and demand at the aggregate level.

(CPIM) Certified in Planning and Inventory Management Practice Test