CSCP FREE Certified Supply Chain Professional (CSCP) Supply Chain Design Strategy Questions and Answers 2 — Questions and Answers
Question 1: Which supply chain design approach focuses on postponing product differentiation until customer orders are received?
- Lean manufacturing
- Postponement strategy (Correct answer)
- Vertical integration
- Push-based planning
Correct answer: Postponement strategy
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?
- Eliminating all transportation costs
- Consolidating shipments to achieve economies of scale (Correct answer)
- Removing the need for inventory management
- Guaranteeing same-day delivery to all customers
Correct answer: Consolidating shipments to achieve economies of scale
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?
- Moving production facilities to the lowest-cost country globally
- Relocating operations to geographically closer countries (Correct answer)
- Outsourcing all logistics to a third-party provider
- Building redundant facilities in the same domestic market
Correct answer: Relocating operations to geographically closer countries
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?
- Minimizing unit production cost at all stages
- Maximizing responsiveness and speed to market (Correct answer)
- Centralizing all inventory in a single warehouse
- Establishing long-term fixed-price supplier contracts
Correct answer: Maximizing responsiveness and speed to market
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?
- Higher per-unit costs due to lack of competition
- Increased complexity in supplier management
- Supply disruption vulnerability if that supplier fails (Correct answer)
- Reduced quality control over incoming materials
Correct answer: Supply disruption vulnerability if that supplier fails
Relying on a single supplier creates a critical point of failure where any disruption at that supplier directly halts the buyer's operations.
Question 6: Which supply chain design metric measures the total time from raw material procurement to delivery of the finished product to the end customer?
- Inventory turnover ratio
- Cash-to-cash cycle time
- Order-to-delivery lead time
- Supply chain cycle time (Correct answer)
Correct answer: Supply chain cycle time
Supply chain cycle time measures the end-to-end duration from sourcing raw materials through manufacturing and distribution to final customer delivery.
CSCP FREE Certified Supply Chain Professional (CSCP) Supply Chain Design Strategy Questions and Answers 2
Which supply chain design approach focuses on postponing product differentiation until customer orders are received?