Supply Chain Strategy & Design Flashcards
7 cards from real CPSM 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 & Design flashcards as text
Which supply chain design strategy is BEST suited for products with high demand uncertainty and short life cycles?
Answer: Agile supply chain
Agile supply chains are designed for speed and flexibility to respond to unpredictable demand, making them ideal for volatile, short-lifecycle products.
A company sources a critical component from a single supplier in one country. Which supply chain risk mitigation strategy should it prioritize?
Answer: Dual or multi-sourcing the component
Dual or multi-sourcing reduces geographic and supplier concentration risk, ensuring continuity if one source is disrupted.
What does 'postponement' in supply chain design refer to?
Answer: Deferring product differentiation to as late as possible in the supply chain
Postponement delays final product customization until closer to the point of customer demand, reducing finished goods inventory risk.
In the SCOR model, which level focuses on process categories such as Plan, Source, Make, Deliver, Return, and Enable?
Answer: Level 1 — Top Level
Level 1 of the SCOR model defines the top-level process types: Plan, Source, Make, Deliver, Return, and Enable.
Which factor MOST influences the decision to use a hub-and-spoke distribution network versus a direct shipping model?
Answer: Order size, frequency, and geographic dispersion of customers
Hub-and-spoke networks consolidate shipments efficiently when customers are dispersed and orders are small and frequent, whereas direct shipping suits large, infrequent orders.
A firm wants to reduce total supply chain cost while maintaining service levels. Which approach directly addresses the trade-off between inventory costs and transportation costs?
Answer: Network optimization modeling
Network optimization modeling analyzes the cost trade-offs between transportation, inventory, and facility costs to find the optimal distribution structure.
Which concept describes the phenomenon where small fluctuations in end-customer demand cause increasingly large swings in orders upstream in the supply chain?
Answer: The bullwhip effect
The bullwhip effect occurs when demand variability is amplified at each upstream stage due to order batching, forecasting errors, and lead time variability.