CPSM Supply Chain Strategy & Design 4

Question 1

When designing a global supply chain, which approach best balances local responsiveness with global efficiency?

Accepted Answer

A transnational strategy combining global scale with local adaptation

Answer

A transnational strategy captures economies of scale globally while adapting to local market needs, balancing efficiency and responsiveness.

Question 2

Which supply chain strategy is MOST appropriate for commodity products with stable, predictable demand?

Accepted Answer

Lean/Efficient

Answer

Lean/efficient supply chains minimize waste and cost, which is optimal for stable, high-volume commodity products where demand is predictable.

Question 3

Total cost of ownership (TCO) analysis in supply chain strategy includes which of the following cost elements?

Accepted Answer

Purchase price, transportation, quality, and end-of-life costs

Answer

TCO encompasses all costs across the product lifecycle, including acquisition, operating, quality, logistics, and disposal costs beyond just purchase price.

Question 4

A company is evaluating whether to insource or outsource a manufacturing process. Which factor MOST supports an outsourcing decision?

Accepted Answer

The supplier has superior capabilities and economies of scale

Answer

Outsourcing is favored when an external supplier can perform the function better or more cheaply, and the activity is not a core strategic differentiator.

Question 5

Which supply chain design principle does 'decoupling point' refer to?

Accepted Answer

The point in the supply chain that separates make-to-stock from make-to-order operations

Answer

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.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supply Chain Strategy & Design 4