CSCP Supply Chain Design Strategy 4 — Questions and Answers
Question 1: A supply chain that emphasizes sustainability goals would most likely evaluate suppliers based on:
- Price alone
- Economic, environmental, and social performance criteria (Correct answer)
- Geographic proximity only
- Production capacity only
Correct answer: Economic, environmental, and social performance criteria
Sustainable supply chain management uses triple-bottom-line criteria covering economic, environmental, and social dimensions.
Question 2: Which of the following best describes a 'responsive' supply chain design?
- Minimizing cost by running at full capacity with low variety
- Quickly adapting to changes in demand with flexible capacity and short lead times (Correct answer)
- Relying on long-term fixed contracts with a single supplier
- Maximizing economies of scale through large batch production
Correct answer: Quickly adapting to changes in demand with flexible capacity and short lead times
Responsive supply chains prioritize speed and flexibility to meet uncertain or rapidly changing demand.
Question 3: Global supply chain design must account for which unique risk compared to domestic supply chains?
- Demand variability only
- Currency fluctuation, tariffs, geopolitical risk, and longer lead times (Correct answer)
- Warehouse location selection
- Seasonal demand patterns
Correct answer: Currency fluctuation, tariffs, geopolitical risk, and longer lead times
Global supply chains face compounded risks including currency, tariffs, geopolitics, and extended lead times not present in domestic networks.
Question 4: Cross-docking in a distribution network is designed to:
- Store inventory for extended periods to buffer demand
- Transfer products from inbound to outbound transport with minimal or no storage (Correct answer)
- Consolidate small orders into large production batches
- Manage returns from end customers
Correct answer: Transfer products from inbound to outbound transport with minimal or no storage
Cross-docking moves goods directly from receiving to outbound shipping, reducing storage time and handling costs.
Question 5: When a company evaluates whether to make or buy a component, the primary strategic consideration is:
- Whether the component is part of a core competency (Correct answer)
- The color of the packaging
- The age of the production equipment
- The number of employees in the supplier's workforce
Correct answer: Whether the component is part of a core competency
Make-or-buy decisions hinge on whether the activity is a core competency that provides competitive advantage.
Question 6: Which supply chain performance dimension does the 'perfect order rate' metric primarily measure?
- Cost efficiency
- Customer-facing reliability and service quality (Correct answer)
- Asset utilization
- Supplier flexibility
Correct answer: Customer-facing reliability and service quality
Perfect order rate captures the percentage of orders delivered complete, on time, undamaged, and with correct documentation.
Question 7: A company redesigning its supply chain network runs a mathematical optimization model. The primary objective of this model is typically to:
- Replace all human decision-makers
- Minimize total supply chain cost while meeting service-level constraints (Correct answer)
- Maximize the number of warehouses in the network
- Select the supplier with the lowest unit price
Correct answer: Minimize total supply chain cost while meeting service-level constraints
Network optimization models seek the lowest-cost configuration that still satisfies customer service requirements.
CSCP Supply Chain Design Strategy 4
A supply chain that emphasizes sustainability goals would most likely evaluate suppliers based on: