Supply Chain and Logistics Supply Chain Planning and Strategy 2

Question 1

What is collaborative planning, forecasting, and replenishment (CPFR)?

Accepted Answer

A supply chain best practice where trading partners jointly develop forecasts and replenishment plans

Answer

CPFR improves supply chain efficiency by sharing forecasting, promotional, and inventory data between retailers and suppliers.

Question 2

What is postponement strategy in supply chain management?

Accepted Answer

Deferring product differentiation to the latest possible point in the supply chain

Answer

Postponement delays customization or final assembly until actual demand is known, reducing forecast risk and inventory obsolescence.

Question 3

What is a make-to-order (MTO) production strategy?

Accepted Answer

Manufacturing products only after a confirmed customer order is received

Answer

Make-to-order production starts only after a customer order is placed, reducing finished goods inventory while increasing lead times.

Question 4

What is the difference between a push and pull supply chain strategy?

Accepted Answer

Push produces based on forecasts; pull produces based on actual demand signals

Answer

Push strategies build and distribute inventory based on demand forecasts, while pull strategies respond to real customer orders or consumption signals.

Question 5

What is a supply chain risk assessment?

Accepted Answer

A systematic process to identify, evaluate, and prioritize risks across supply chain operations

Answer

Supply chain risk assessment identifies vulnerabilities like single-source dependencies, geographic concentration, and supplier financial fragility.

Supply Chain and Logistics Practice Test

Supply Chain and Logistics Practice Test

Supply Chain and Logistics Supply Chain Planning and Strategy 2