APICS CSCP Dumps Questions Answers

When making a make-or-buy decision, several factors must be considered beyond costs and proprietary knowledge. The option to "make" implies manufacturing the product in-house, while "buy" means outsourcing the production. Key considerations include:

Costs: Both fixed and variable costs associated with in-house production versus purchasing from a supplier.

Proprietary Knowledge: The importance of keeping certain knowledge and technologies within the company for competitive advantage.

Available Capacity: Whether the company has the necessary production capacity to manufacture the product without affecting other operations. This involves assessing current production capabilities and future scalability.

Quality Control: The ability to maintain the desired level of quality in-house versus the quality assurance capabilities of potential suppliers.

Flexibility and Lead Time: The ability to respond quickly to market changes and customer demands.

Strategic Importance: How critical the component or product is to the company's core business and strategic goals.

Among the given options, "available capacity" is the most relevant factor, as it directly influences the decision of whether to allocate internal resources to production or to outsource.

The primary objective of supply chain management is to take a systems approach. This involves viewing the supply chain as a whole, rather than as a collection of separate entities. By taking a systems approach, supply chain management aims to integrate and coordinate the activities of suppliers, manufacturers, and distributors to optimize overall performance and achieve efficiencies across the entire supply chain. This holistic perspective ensures that decisions made in one part of the supply chain consider the impacts on other parts, leading to improved customer satisfaction, reduced costs, and better use of resources.

References

Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK.

Stadtler, H., & Kilger, C. (Eds.). (2008). Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies. Springer Science & Business Media.

Context: Strategic supply chain activities are pursued to achieve long-term business objectives.

Options Breakdown:

A. Gain competitive advantage: Strategic activities enhance a firm’s market position through improved efficiency, customer service, and innovation.

B. Reduce total cost of ownership (TCO): While important, this is often a tactical goal rather than the primary strategic driver.

C. Decrease inventory: Inventory reduction is a tactical benefit but not the main strategic reason.

D. Increase product life cycles: Extending product life cycles can be a goal, but it is not the primary strategic driver.

Correct Answer Justification: The primary reason for engaging in strategic supply chain activities is to gain a competitive advantage by enhancing overall performance and customer satisfaction.