APICS Updated CSCP Exam Questions and Answers by amirah

Investing in redundancy is the most appropriate strategy for managing unknown risks in a global supply chain. Here’s a detailed explanation:

Unknown Risks: These are risks that cannot be predicted or quantified accurately, such as natural disasters, political instability, or sudden supply chain disruptions.

Redundancy Strategy:

Multiple Suppliers: Engaging multiple suppliers for critical components to ensure that if one supplier fails, another can step in.

Backup Inventory: Keeping additional inventory at strategic locations to buffer against supply disruptions.

Diversified Sourcing: Sourcing from different geographic locations to mitigate regional risks.

Risk Mitigation: Redundancy helps in spreading risk across multiple sources and ensures continuity in the supply chain despite unforeseen events.

Resilience: Building redundancy into the supply chain enhances resilience, enabling the company to respond and recover quickly from disruptions.

References

Christopher, M. (2016). Logistics & Supply Chain Management.

Sheffi, Y. (2005). The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage.

When a supplier's performance ratings fall below the agreed-upon levels, the most appropriate initial action is to engage in a constructive dialogue with the supplier. This discussion should focus on identifying the reasons behind the underperformance and collaboratively developing an improvement plan. This approach not only addresses the immediate performance issues but also fosters a long-term partnership based on continuous improvement and mutual benefits. Placing a supplier on probation or modifying performance expectations might be necessary if improvements are not seen, but these steps should come after attempting to work together on a solution.

References

"Supplier Evaluation and Performance Excellence: A Guide to Meaningful Metrics and Successful Results" by Sherry R. Gordon

APICS Operations Management Body of Knowledge Framework

The Economic Order Quantity (EOQ) model is designed to determine the optimal order quantity that minimizes the total costs of inventory, including ordering and holding costs. A key assumption of the EOQ model is that the rate of demand is continuous and constant. This means that the demand for the product does not fluctuate significantly over time, allowing for a steady and predictable rate of consumption. This assumption simplifies the calculation by ensuring that order cycles are regular and inventory depletion occurs at a consistent rate. Options A, C, and D do not align with the fundamental assumptions of the EOQ model.