CSCP FREE Certified Supply Chain Professional (CSCP) Supply Chain Design Strategy Questions and Answers 2

Question 1

Which supply chain design approach focuses on postponing product differentiation until customer orders are received?

Accepted Answer

Postponement strategy

Answer

Postponement delays final product configuration until actual demand is known, reducing inventory risk and increasing customization flexibility.

Question 2

What is the primary benefit of implementing a hub-and-spoke distribution network design?

Accepted Answer

Consolidating shipments to achieve economies of scale

Answer

Hub-and-spoke networks consolidate freight through central hubs, reducing per-unit transportation costs through volume efficiencies.

Question 3

In supply chain network design, what does the term 'nearshoring' refer to?

Accepted Answer

Relocating operations to geographically closer countries

Answer

Nearshoring moves operations to nearby countries to reduce lead times and logistics complexity while maintaining cost advantages.

Question 4

Which factor is MOST critical when designing a supply chain for products with short life cycles and unpredictable demand?

Accepted Answer

Maximizing responsiveness and speed to market

Answer

Short life cycle products with volatile demand require responsive supply chains that prioritize speed and flexibility over cost efficiency.

Question 5

What is the main risk of a single-source supplier strategy in supply chain design?

Accepted Answer

Supply disruption vulnerability if that supplier fails

Answer

Relying on a single supplier creates a critical point of failure where any disruption at that supplier directly halts the buyer's operations.

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