Certified Supply Chain Professional (CSCP) Practice Exam

What does the strategic level of APS determine?

1. The allocation of budgets for each department

2. The location of factories within the supply chain

3. The hiring needs for each manufacturing facility

4. The types of products to be manufactured

The correct answer is: The location of factories within the supply chain

The strategic level of Advanced Planning and Scheduling (APS) is primarily concerned with high-level decisions that shape the overall supply chain framework. This involves determining foundational elements such as the location of factories within the supply chain, which significantly influences operational efficiency, costs, and service levels. By strategically positioning factories, an organization can minimize transportation costs, enhance responsiveness to customer demand, and optimize resource utilization. These decisions are crucial as they affect all subsequent planning and operational decisions, aligning with broader organizational goals and market dynamics. In contrast, budget allocations, hiring needs, and product types are more tactical or operational in nature, focusing on narrower aspects of the supply chain rather than its strategic framework. While these factors are certainly important, they derive from the broader decisions made at the strategic level and serve to implement the overarching supply chain strategy.