Certified Supply Chain Professional (CSCP) Practice Exam

How is supply chain design defined?

1. Identification of supplier locations

2. The structure of the supply chain

3. Cost analysis of operations

4. Management of customer relations

The correct answer is: The structure of the supply chain

Supply chain design refers to the overall framework or architecture of the supply chain. This includes the configuration of facilities, the distribution network, the selection of suppliers, and the flow of materials and information. The purpose of supply chain design is to create a system that is efficient and meets the demands of customers while also aligning with the business’s strategic goals. By focusing on the structure of the supply chain, design encompasses decisions about where to locate warehouses, how to transport goods, and the relationships between various entities in the chain. It requires an understanding of the end-to-end supply chain process, taking into account factors such as cost, service level, and flexibility. Other aspects such as supplier locations, cost analysis, and customer relations are important for operational effectiveness but are components of the broader supply chain design framework rather than defining the concept itself.