Certified Supply Chain Professional (CSCP) Practice Exam

What happens to lead times when goods are transported as manufactured?

1. Lead times increase

2. Lead times remain the same

3. Lead times reduce

4. Lead times become unpredictable

The correct answer is: Lead times reduce

When goods are transported as manufactured, lead times typically reduce. This occurs because shipping products in their finished state allows for a more streamlined supply chain process. When items are completed at the manufacturing stage, they can be immediately transported to the next point in the logistics chain, whether that is a distribution center or directly to retail locations. Manufacturers can optimize shipping schedules and routes based on the availability of finished goods, leading to faster delivery times compared to transporting raw materials or semi-finished products that require additional processing before they can be sold. Additionally, finished goods often adhere to more predictable shipping practices since they are already fully processed, enabling better planning and coordination. In contrast to this, options that suggest an increase, no change, or unpredictability in lead times do not take into account the efficiency gained by handling fully manufactured goods. When raw materials or parts are involved, there is usually more complexity in transportation, processing, and assembly, which tends to result in longer lead times. Hence, transporting finished goods simplifies and expedites the overall logistics process, contributing to a reduction in lead times.