Supply Chain Design Flashcards

Which of the following is an example of a 'reverse supply chain' activity?

Answer: Product returns, recycling, and refurbishment flows from customer back to manufacturer

Reverse supply chain (reverse logistics) manages the flow of products back through the supply chain for returns, repairs, recycling, or disposal.

What does 'supply chain visibility' mean in the CSCP context?

Answer: The ability to track inventory, orders, and shipments across all tiers of the supply chain in real time

Supply chain visibility provides real-time or near-real-time awareness of where products and orders are at every point in the supply chain.

When evaluating a new manufacturing location, which framework helps assess country-level risks?

Answer: PESTLE analysis (Political, Economic, Social, Technological, Legal, Environmental)

PESTLE analysis evaluates macro-environmental factors that affect the viability of a business location or market.

In supply chain design, 'nearshoring' refers to:

Answer: Relocating supply chain operations to nearby countries rather than distant low-cost regions

Nearshoring moves production or sourcing to nearby countries, balancing lower costs with reduced lead times and geopolitical risk compared to offshoring.

Which supply chain design strategy best mitigates the risk of a single-source supplier failure?

Answer: Multi-sourcing from geographically diverse suppliers

Multi-sourcing spreads supply risk across multiple suppliers, ensuring continuity if one source is disrupted.

The 'landed cost' calculation for an imported product typically includes:

Answer: Product price, freight, insurance, customs duties, and taxes

Landed cost represents the total cost of a product at the point of delivery, including all costs from origin to destination.