CPSM Supply Chain Strategy & Design 5

Question 1

Which metric is MOST directly used to measure supply chain responsiveness?

Accepted Answer

Order-to-delivery cycle time

Answer

Order-to-delivery cycle time measures how quickly the supply chain can fulfill customer orders, directly reflecting responsiveness.

Question 2

A supply chain manager is assessing strategic fit. What does 'strategic fit' mean in this context?

Accepted Answer

Consistency between the supply chain strategy and the competitive strategy of the business

Answer

Strategic fit means the supply chain's capabilities in cost, speed, and flexibility are aligned with what the competitive strategy requires to win in the market.

Question 3

Which of the following BEST describes a vertically integrated supply chain strategy?

Accepted Answer

A company owning and controlling multiple stages of its supply chain internally

Answer

Vertical integration means a company owns suppliers, manufacturers, distributors, or retailers within its supply chain to control quality, cost, and supply security.

Question 4

When is a make-to-order (MTO) production strategy MOST appropriate?

Accepted Answer

When products are highly customized or have high value with unpredictable demand

Answer

MTO is best for customized or high-value products where holding finished goods inventory is too costly or impractical, and customers accept a lead time.

Question 5

A supply chain resilience strategy that involves maintaining pre-negotiated agreements with backup suppliers is called:

Accepted Answer

Flexible sourcing or contingency sourcing

Answer

Contingency or flexible sourcing involves pre-qualifying alternate suppliers and maintaining agreements so the company can rapidly switch during a disruption.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supply Chain Strategy & Design 5