CSCP Supply Chain Design Strategy 3 — Questions and Answers
Question 1: The SCOR model's 'Plan' process includes which of the following activities?
- Physical movement of goods from supplier to customer
- Balancing supply and demand and establishing sourcing, production, and delivery plans (Correct answer)
- Returning defective products to suppliers
- Managing customer order fulfillment
Correct answer: Balancing supply and demand and establishing sourcing, production, and delivery plans
The SCOR Plan process covers demand/supply balancing and the establishment of integrated operational plans.
Question 2: A company with a make-to-stock (MTS) strategy primarily uses which input to drive production?
- Confirmed customer orders
- Demand forecasts (Correct answer)
- Supplier lead times
- Available-to-promise calculations
Correct answer: Demand forecasts
MTS production is triggered by demand forecasts rather than actual customer orders.
Question 3: Which supply chain design approach is most suitable when customer segments have significantly different service requirements?
- One-size-fits-all supply chain
- Segmented supply chain with tailored strategies per segment (Correct answer)
- Single centralized warehouse for all customers
- Fully automated, technology-driven supply chain
Correct answer: Segmented supply chain with tailored strategies per segment
Segmented supply chains tailor cost and service levels to the distinct needs of each customer group.
Question 4: Total landed cost analysis in supply chain design includes which of the following?
- Only the purchase price of goods
- Purchase price, transportation, duties, insurance, and handling costs (Correct answer)
- Transportation and warehousing costs only
- Production labor costs only
Correct answer: Purchase price, transportation, duties, insurance, and handling costs
Total landed cost captures all costs incurred to get a product to its destination, including duties and handling.
Question 5: A company moves from a decentralized inventory model to a centralized one. The most likely outcome is:
- Higher total inventory due to more stocking points
- Lower total inventory through risk pooling (Correct answer)
- Faster delivery to all customers
- Elimination of all safety stock
Correct answer: Lower total inventory through risk pooling
Centralization leverages risk pooling, which reduces total safety stock needed across the network.
Question 6: Which supply chain strategy is Fisher's framework most associated with?
- Matching supply chain type (efficient vs. responsive) to product type (functional vs. innovative) (Correct answer)
- Selecting the cheapest supplier regardless of product type
- Designing supply chains purely based on geographic location
- Using automation to replace all human decision-making
Correct answer: Matching supply chain type (efficient vs. responsive) to product type (functional vs. innovative)
Fisher's framework advises matching an efficient chain to functional products and a responsive chain to innovative products.
Question 7: In a make-to-order (MTO) environment, the customer order decoupling point (CODP) is located:
- After finished goods inventory
- At the raw material stage, before production begins (Correct answer)
- Within the distribution network
- At the retail shelf
Correct answer: At the raw material stage, before production begins
In MTO, production begins only after a customer order is received, placing the CODP at raw materials.
CSCP Supply Chain Design Strategy 3
The SCOR model's 'Plan' process includes which of the following activities?