Certified Supply Chain Professional (CSCP) Practice Exam

What characterizes the one-step lead strategy?

1. Incrementally increasing resources

2. Expanding capacity all at once ahead of demand

3. Following demand closely with capacity

4. Delaying capacity expansion until demand arises

The correct answer is: Expanding capacity all at once ahead of demand

The one-step lead strategy is characterized by expanding capacity all at once ahead of demand. This approach is adopted primarily to ensure that a company can meet future demand without delay. By increasing capacity preemptively, businesses are positioned to capture market opportunities as they arise, minimize the risk of stockouts, and enhance customer satisfaction through timely delivery of products and services. This strategy contrasts with more reactive approaches, where capacity changes are made in response to actual demand patterns. Companies may choose the one-step lead strategy when they anticipate significant increases in demand or when they want to establish a competitive advantage by being prepared ahead of time. This proactive stance is especially crucial in industries where demand can be unpredictable or where lead times for expanding capacity are lengthy.