CSCP Supply Chain Design Strategy 2

Question 1

A company wants to reduce supply chain risk by sourcing a critical component from two different suppliers in different regions. This strategy is best described as:

Accepted Answer

Dual sourcing

Answer

Dual sourcing splits procurement across two suppliers to reduce dependency and geographic risk.

Question 2

Which supply chain design principle suggests delaying product differentiation as long as possible in the production process?

Accepted Answer

Postponement

Answer

Postponement delays final product configuration to reduce forecast error and inventory risk.

Question 3

A firm decides to take ownership of its key suppliers. This vertical integration strategy is called:

Accepted Answer

Backward integration

Answer

Backward integration occurs when a company acquires or merges with its upstream suppliers.

Question 4

Which metric best measures how efficiently a supply chain converts investment into revenue?

Accepted Answer

Asset turnover ratio

Answer

Asset turnover ratio measures revenue generated per dollar of assets, reflecting supply chain efficiency.

Question 5

In supply chain network design, a 'hub-and-spoke' model primarily offers:

Accepted Answer

Consolidated transportation and lower freight costs

Answer

Hub-and-spoke consolidates shipments through central hubs, reducing overall transportation costs.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP Supply Chain Design Strategy 2