APICS CSCP Exam - Topic 5 Question 96 Discussion

Actual exam question for APICS's CSCP exam

Question #: 96
Topic #: 5

[All CSCP Questions]

Overall supply chain risk may be increased by implementing which of the following strategies?

ASingle sourcing a product that makes the highest annual profit

BOutsourcing products that are not well suited to a company's operations

CIdentifying multiple sources for a product with the potential for supply chain disruption

DInternally manufacturing products with high levels of technical intellectual property

Show Suggested Answer

Suggested Answer: A

Single sourcing a high-profit product increases overall supply chain risk due to several reasons:

Supplier Dependency: Relying on a single supplier for a critical product creates a high dependency, making the supply chain vulnerable to disruptions if that supplier faces issues (e.g., natural disasters, financial instability).

Lack of Alternatives: Without alternative sources, any disruption can lead to significant delays, shortages, and potential loss of revenue.

Negotiation Leverage: Single sourcing can reduce the buyer's negotiation leverage, potentially leading to higher costs or unfavorable terms.

Outsourcing unsuitable products, identifying multiple sources for risk-prone products, and internally manufacturing IP-sensitive products are strategies to mitigate risk, not increase it.

Chopra, Sunil, and Peter Meindl. 'Supply Chain Management: Strategy, Planning, and Operation.' Pearson.

Harland, Christine, Richard Brenchley, and Helen Walker. 'Risk in Supply Networks.' Journal of Purchasing and Supply Management.

by Paris at Sep 06, 2024, 08:58 AM

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Tamera

5 months ago

But A does maximize profits, right? Gotta weigh the risks!

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Julianna

5 months ago

Wait, how does D reduce risk? Sounds counterintuitive.

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Jestine

6 months ago

C seems like a smart move to mitigate disruptions.

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Cammy

6 months ago

Totally agree, B can lead to chaos in operations!

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Rima

6 months ago

A is risky because it puts all eggs in one basket.

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Romana

6 months ago

I practiced a question similar to this, and I think D might also increase risk, especially if the tech is complex and hard to manage internally.

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Gladys

7 months ago

I feel like identifying multiple sources is usually a good strategy to mitigate risk, so C doesn't seem right for increasing it.

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Lynna

7 months ago

I'm not entirely sure, but outsourcing products that don't fit well with a company's strengths seems risky too. Could B be the answer?

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Sophia

7 months ago

I remember discussing how single sourcing can really increase risk, especially if that supplier has issues. So, I think A might be a good choice.

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Dusti

7 months ago

This is straightforward. The answer is clearly C - identifying multiple sources reduces risk, while the other options increase it. I'm confident in this one.

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Dudley

7 months ago

Hmm, I'm a bit confused on this one. I'll have to review my notes on supply chain management to see if I can figure out the right approach.

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Pearly

7 months ago

This seems like a tricky one. I'll need to think through the different strategies and how they might impact supply chain risk.

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Jolene

7 months ago

Okay, I think I've got this. The key is to identify strategies that increase risk, not decrease it. I'll carefully consider each option.

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Jody

7 months ago

The wording of the options is a bit confusing. I'll need to re-read the question to make sure I understand it properly.

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Rebecka

7 months ago

Yeah, I agree with Michael. Option A looks like the most comprehensive answer that captures the core purpose of the Relationship processes.

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Kerrie

2 years ago

Ah, the age-old question: should I go for the big bucks or play it safe? This one's a real head-scratcher. Personally, I'd choose the option that comes with the least amount of heartburn.

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Odette

2 years ago

C) Identifying multiple sources for a product with the potential for supply chain disruption

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Lynsey

2 years ago

B) Outsourcing products that are not well suited to a company's operations

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Kenny

2 years ago

A) Single sourcing a product that makes the highest annual profit

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Melodie

2 years ago

I agree with Jeannetta, C seems like the best option to minimize supply chain risk.

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Jeannetta

2 years ago

But having multiple sources can reduce the risk of disruption.

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Ceola

2 years ago

Internally manufacturing high-tech products? Hmm, I'm not sure that's the best strategy for reducing overall risk. Seems like a potential bottleneck waiting to happen.

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