Discuss APICS CSCP Exam Topic 3 Question 88

Risk pooling is a concept that suggests:

Ademand variability is increased if demand is disaggregated across locations.

Bdemand variability is reduced if demand is disaggregated across locations.

Cdemand variability is increased if demand is aggregated across locations.

Ddemand variability is reduced if demand is aggregated across locations.

Suggested Answer: C

According to the APICS CSCP - Supply Chain Management Certification, outsourcing is the process of transferring some or all of the activities or functions of a firm to an external provider or supplier. Outsourcing can have many benefits, such as reducing capital investment, achieving economies of scale, increasing flexibility, and accessing specialized skills or technologies. However, outsourcing also involves some risks, such as conflicting objectives between the buyer and the supplier, loss of control over quality or delivery, loss of core competencies or competitive advantage, increased dependency or vulnerability, or ethical or social issues.

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31 comments · newest first

Aliza 10 months ago

I thought disaggregating would lower variability too!

Flo 11 months ago

It's all about spreading the risk, right?

Daron 11 months ago

Wait, how does aggregating actually reduce variability?

Jesusita 11 months ago

Totally agree, B is the right answer!

Shayne 11 months ago

Risk pooling helps reduce demand variability.

Christoper 12 months ago

I'm confused about the terms here. I thought pooling was supposed to reduce risk, but I'm not clear if that applies to aggregation or disaggregation.

Blair 12 months ago

I practiced a question like this before, and I think it was about how aggregating demand can help manage risks better. So, I might lean towards D.

Sena 12 months ago

I remember something about disaggregating demand increasing variability, but I'm not entirely sure if that means we should choose option B or D.

Timothy 1 year ago

I think risk pooling means that when you combine demand from different locations, it helps to smooth out the variability. So, maybe it's about reducing variability when aggregated?

Emogene 1 year ago

I'm a bit confused on this one. I know risk pooling has something to do with demand variability, but I'm not sure if it's about aggregating or disaggregating demand. I'll have to review my notes and try to reason through the options.

Ryan 1 year ago

Okay, I've got this. Risk pooling means that aggregating demand reduces variability, so the answer must be D. Demand variability is reduced if demand is aggregated across locations.

Werner 1 year ago

I think the key here is understanding how demand variability is affected by aggregating or disaggregating demand across locations. I'll need to carefully consider the options and apply my knowledge of risk pooling.

Alaine 1 year ago

Hmm, this is a tricky one. I'll need to really think through the concept of risk pooling and how it relates to demand variability. I'm not 100% sure, but I'll give it my best shot.

Hermila 1 year ago

I'm confident I can handle this question. The company would want to use email integration to share documents like statements and invoices with customers. They might also use it for things like negotiating prices or handling customer complaints, but those don't seem as directly relevant to the question.

Macy 1 year ago

I think a proprietary compression algorithm could cause corruption, but I feel like that might be less likely than just losing access due to connectivity issues.

Cassi 1 year ago

Haha, this is a classic question. Of course, it's D! Pooling demand is like diversifying your investment portfolio - it reduces your risk.

Yesenia 1 year ago

↳ replying to Cassi

So, the answer is D - demand variability is reduced if demand is aggregated across locations.

Omega 1 year ago

↳ replying to Cassi

It's like spreading out your risk, just like with investments.

Rusty 1 year ago

↳ replying to Cassi

I agree, pooling demand definitely helps reduce variability.

Catalina 1 year ago

Hmm, I was a bit unsure, but D makes the most sense. The more you aggregate, the more the variability gets smoothed out.

Carin 1 year ago

↳ replying to Catalina

Pooling resources can definitely help to stabilize demand.

Carline 1 year ago

↳ replying to Catalina

It's all about spreading the risk and reducing variability.

Solange 1 year ago

↳ replying to Catalina

That's right, aggregating demand across locations can help to smooth out fluctuations.

Thaddeus 1 year ago

↳ replying to Catalina

I agree, D is the correct answer. Risk pooling helps to reduce demand variability.

Paulene 1 year ago

Definitely option D. Consolidating demand helps smooth out fluctuations and reduces the overall variability. This is a key concept in supply chain management.

Vivan 1 year ago

I think option D is the correct answer. Aggregating demand across locations reduces variability through the principle of risk pooling.

Barbra 1 year ago

↳ replying to Vivan

Yes, aggregating demand across locations can definitely help in reducing variability.

Alyssa 1 year ago

↳ replying to Vivan

I agree, option D is correct. Risk pooling helps reduce demand variability.

Tashia 2 years ago

Interesting, can you explain why you think that?

Jovita 2 years ago

I disagree, I believe the answer is D) demand variability is reduced if demand is aggregated across locations.

Tashia 2 years ago

I think the answer is B) demand variability is reduced if demand is disaggregated across locations.

APICS CSCP Exam - Topic 3 Question 88 Discussion