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
When designing a global supply chain, which approach best balances local responsiveness with global efficiency?
Answer: A transnational strategy combining global scale with local adaptation
A transnational strategy captures economies of scale globally while adapting to local market needs, balancing efficiency and responsiveness.
Which supply chain strategy is MOST appropriate for commodity products with stable, predictable demand?
Answer: Lean/Efficient
Lean/efficient supply chains minimize waste and cost, which is optimal for stable, high-volume commodity products where demand is predictable.
Total cost of ownership (TCO) analysis in supply chain strategy includes which of the following cost elements?
Answer: Purchase price, transportation, quality, and end-of-life costs
TCO encompasses all costs across the product lifecycle, including acquisition, operating, quality, logistics, and disposal costs beyond just purchase price.
A company is evaluating whether to insource or outsource a manufacturing process. Which factor MOST supports an outsourcing decision?
Answer: The supplier has superior capabilities and economies of scale
Outsourcing is favored when an external supplier can perform the function better or more cheaply, and the activity is not a core strategic differentiator.
Which supply chain design principle does 'decoupling point' refer to?
Answer: The point in the supply chain that separates make-to-stock from make-to-order operations
The decoupling point (customer order decoupling point) separates the part of the supply chain driven by forecasts from the part driven by actual customer orders.
In supply chain segmentation, what is the PRIMARY purpose of segmenting customers?
Answer: To tailor supply chain service levels and costs to different customer value and needs
Customer segmentation allows firms to differentiate supply chain strategies by profitability, volume, or service requirements, optimizing value delivery.
Which risk is PRIMARILY associated with a highly concentrated, single-region supply base?
Answer: Supply disruption from regional events such as natural disasters or geopolitical instability
Geographic concentration amplifies vulnerability to regional disruptions like earthquakes, floods, or political instability that can halt the entire supply base simultaneously.