Mixed Deck — All CSCP Topics Flashcards

What is 'total cost of ownership' (TCO) analysis used for in supplier selection?

Answer: Comparing the true all-in cost of different suppliers beyond just unit purchase price

TCO in supplier selection captures all costs — acquisition, quality, delivery failures, support, switching — to make accurate comparisons between supplier bids.

How does RFID technology improve supply chain operations compared to traditional barcode scanning?

Answer: RFID reads multiple items simultaneously without line-of-sight, enabling faster and more automated tracking

RFID tags can be read in bulk without scanning each item individually and don't require line-of-sight, dramatically speeding up receiving, picking, and inventory counts.

Which inventory classification method segments items into A, B, and C categories based on annual dollar usage?

Answer: ABC analysis (Pareto analysis)

ABC analysis applies the Pareto principle: A items (~20% of SKUs) typically represent ~80% of annual dollar usage and receive the most management attention.

What is 'supply chain agility' and how does it differ from 'supply chain efficiency'?

Answer: Agility is the ability to respond rapidly to change; efficiency is optimizing cost and resource utilization — they often trade off against each other

Efficient supply chains are lean and cost-optimized for predictable demand; agile chains invest in flexibility and speed to respond to volatile or uncertain conditions.

What is the primary goal of vertical integration in supply chain design?

Answer: To control more stages of the supply chain internally

Vertical integration means a company owns and controls multiple stages of its supply chain, reducing dependency on external partners.

The concept of 'circular economy' in supply chain sustainability means:

Answer: Designing products and processes to minimize waste by keeping materials in use as long as possible through reuse, repair, and recycling

A circular economy replaces the 'take-make-dispose' linear model with closed-loop systems that recover and regenerate materials at the end of product life.

In supply chain design, 'total cost of ownership' (TCO) includes:

Answer: Purchase price plus all costs of acquiring, using, and disposing of a product

TCO captures the full life-cycle cost including acquisition, operation, maintenance, and disposal beyond just the purchase price.

What is 'carbon footprint' measurement useful for in supply chain management?

Answer: Identifying where greenhouse gas emissions occur across the supply chain to target reduction efforts

Measuring the supply chain carbon footprint reveals the highest-emission activities and suppliers, enabling prioritized reduction investments.

What is 'business continuity planning' (BCP) in the supply chain context?

Answer: A documented plan for maintaining essential supply chain operations during and after a major disruption

BCP documents specific procedures, alternative resources, and recovery priorities to sustain supply chain operations when primary facilities, systems, or suppliers are unavailable.

What is the key difference between a 'push' system and a 'pull' system in demand-driven supply chain management?

Answer: Push systems use forecasts to drive production; pull systems replenish based on actual demand signals

In a push system, production is triggered by forecasts; in a pull system, replenishment is triggered by actual customer demand, reducing overproduction risk.

What does 'available-to-promise' (ATP) indicate in order management?

Answer: The uncommitted inventory or planned production that can be promised to new customer orders

ATP calculates the quantity available for commitment to new orders by subtracting already promised inventory from on-hand stock and scheduled receipts.

What is the 'order cycle time' metric measuring in supply chain execution?

Answer: The elapsed time from when a customer places an order to when they receive it

Order cycle time measures the end-to-end time from customer order placement to delivery, a key customer service metric.

In warehouse management, 'cross-docking' refers to:

Answer: Transferring inbound shipments directly to outbound vehicles with minimal or no storage time

Cross-docking moves products from receiving directly to shipping, bypassing traditional storage and reducing handling and holding costs.

In supply chain execution, 'track and trace' capabilities primarily benefit:

Answer: Real-time shipment visibility, proactive exception management, and customer communication

Track and trace provides end-to-end shipment visibility, enabling proactive management of delays and accurate customer delivery communication.

What does the term 'demand latency' refer to in supply chain demand management?

Answer: The time delay between when demand occurs and when it is visible to supply chain planners

Demand latency is the time lag between actual consumption at the point of sale and the point at which that demand signal reaches upstream planners, contributing to the bullwhip effect.

Which approach best describes 'strategic sourcing'?

Answer: A disciplined, data-driven process for evaluating total spend, supply markets, and supplier capabilities to maximize value

Strategic sourcing uses spend analysis, market intelligence, and cross-functional teams to develop category strategies that optimize total value — not just price.

A 'preferred supplier' designation typically means:

Answer: The supplier meets all qualification criteria, receives first consideration for new business, and may get favorable terms

Preferred supplier status rewards high-performing suppliers with priority access to new business opportunities and a closer collaborative relationship.

Which of the following is an example of 'supply chain risk transfer'?

Answer: Purchasing supply chain disruption insurance or requiring suppliers to carry performance bonds

Risk transfer shifts the financial consequences of a risk event to another party — typically through insurance, contracts, or performance guarantees.

Which supply chain design strategy best mitigates the risk of a single-source supplier failure?

Answer: Multi-sourcing from geographically diverse suppliers

Multi-sourcing spreads supply risk across multiple suppliers, ensuring continuity if one source is disrupted.

Which KPI measures the percentage of customer orders fulfilled completely, on time, and without damage?

Answer: Perfect Order Rate

The Perfect Order Rate captures complete, on-time, damage-free, and correctly invoiced orders as a single end-to-end measure of order fulfillment quality.