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APICS CSCP Exam - Topic 2 Question 131 Discussion

A company most likely would consider moving a portion of its manufacturing to a second location to:
D) minimize the impact of natural disasters.
A) improve competitive advantage through cost control.
B) avoid manufacturing downtime due to material shortages.
C) maximize security for customer shipments.

APICS CSCP Exam - Topic 2 Question 131 Discussion

Actual exam question for APICS's CSCP exam
Question #: 131
Topic #: 2
[All CSCP Questions]

A company most likely would consider moving a portion of its manufacturing to a second location to:

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Suggested Answer: D

A company would consider moving a portion of its manufacturing to a second location to minimize the impact of natural disasters. This strategy, known as geographical diversification, helps ensure continuity of operations by spreading risk across different locations. If one site is affected by a natural disaster, the other location can continue to operate, thus minimizing downtime and ensuring a steady supply to customers.

Improving competitive advantage through cost control is more associated with outsourcing or offshoring to lower-cost regions.

Avoiding manufacturing downtime due to material shortages typically involves supply chain optimization rather than relocating manufacturing.

Maximizing security for customer shipments pertains to logistics and transportation security measures, not manufacturing location.


Chopra, S., & Meindl, P. (2016). 'Supply Chain Management: Strategy, Planning, and Operation.'

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

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Joni
4 days ago
I feel like D could be relevant since natural disasters can really disrupt operations, but I’m not confident it’s the primary reason.
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Delmy
9 days ago
I remember a similar question about supply chain risks, and I think avoiding downtime could be a factor too, so maybe B is a good choice.
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Charisse
14 days ago
I think the answer might be A, but I'm not entirely sure if cost control is the main reason for moving manufacturing.
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