CPSM Supply Chain Strategy & Design 3

Question 1

Which supply chain design strategy is BEST suited for products with high demand uncertainty and short life cycles?

Accepted Answer

Agile supply chain

Answer

Agile supply chains are designed for speed and flexibility to respond to unpredictable demand, making them ideal for volatile, short-lifecycle products.

Question 2

A company sources a critical component from a single supplier in one country. Which supply chain risk mitigation strategy should it prioritize?

Accepted Answer

Dual or multi-sourcing the component

Answer

Dual or multi-sourcing reduces geographic and supplier concentration risk, ensuring continuity if one source is disrupted.

Question 3

What does 'postponement' in supply chain design refer to?

Accepted Answer

Deferring product differentiation to as late as possible in the supply chain

Answer

Postponement delays final product customization until closer to the point of customer demand, reducing finished goods inventory risk.

Question 4

In the SCOR model, which level focuses on process categories such as Plan, Source, Make, Deliver, Return, and Enable?

Accepted Answer

Level 1 — Top Level

Answer

Level 1 of the SCOR model defines the top-level process types: Plan, Source, Make, Deliver, Return, and Enable.

Question 5

Which factor MOST influences the decision to use a hub-and-spoke distribution network versus a direct shipping model?

Accepted Answer

Order size, frequency, and geographic dispersion of customers

Answer

Hub-and-spoke networks consolidate shipments efficiently when customers are dispersed and orders are small and frequent, whereas direct shipping suits large, infrequent orders.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supply Chain Strategy & Design 3