CSCP Supply Chain Design 2

Question 1

In supply chain design, 'total cost of ownership' (TCO) includes:

Accepted Answer

Purchase price plus all costs of acquiring, using, and disposing of a product

Answer

TCO captures the full life-cycle cost including acquisition, operation, maintenance, and disposal beyond just the purchase price.

Question 2

Which factor most directly influences the decision to use a centralized versus decentralized distribution network?

Accepted Answer

The tradeoff between transportation cost and customer service lead times

Answer

Centralized networks reduce inventory holding costs but increase transportation costs and lead times, while decentralized networks do the opposite.

Question 3

What is 'supply chain segmentation' in the context of CSCP?

Accepted Answer

Tailoring supply chain strategies to different customer or product groups based on their unique needs

Answer

Supply chain segmentation assigns different service levels, replenishment strategies, or channels to distinct groups of products or customers.

Question 4

Which of the following best describes 'demand shaping' in supply chain management?

Accepted Answer

Using pricing, promotions, and product availability to influence customer demand

Answer

Demand shaping proactively influences customer demand through incentives like discounts, promotions, or product substitutions.

Question 5

A 'hub-and-spoke' distribution network is characterized by:

Accepted Answer

Consolidating shipments through central hubs before delivery to end destinations

Answer

Hub-and-spoke networks consolidate freight at central hubs to achieve economies of scale before distributing to final destinations.

CSCP - Certified Supply Chain Professional Practice Test