CSCP Exam Dumps : Certified Supply Chain Professional Exam

• Context: A global product is no longer appearing profitable, requiring senior management to take action.
• Options Breakdown:
• Correct Answer Justification: By analyzing product profitability by market segment, senior management can make informed decisions on whether to focus efforts on more profitable segments, adjust strategies, or discontinue specific segments.

References:

• Marketing and profitability analysis literature
• Case studies on strategic decision-making for product lines

A company would consider moving a portion of its manufacturing to a second location to minimize the impact of natural disasters. This strategy, known as geographical diversification, helps ensure continuity of operations by spreading risk across different locations. If one site is affected by a natural disaster, the other location can continue to operate, thus minimizing downtime and ensuring a steady supply to customers.

• Improving competitive advantage through cost control is more associated with outsourcing or offshoring to lower-cost regions.
• Avoiding manufacturing downtime due to material shortages typically involves supply chain optimization rather than relocating manufacturing.
• Maximizing security for customer shipments pertains to logistics and transportation security measures, not manufacturing location.

References:

• Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation."
• Sheffi, Y. (2005). "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage."

Benchmarking a firm's performance against industry competitors is valuable because it can reveal which processes require improvement. By comparing key performance indicators (KPIs) with industry standards and best practices, firms can identify gaps in their operations and prioritize areas needing enhancement. This process-driven approach helps companies focus on specific improvements to gain competitive advantages.

• A competitor's manufacturing processes may not be fully disclosed or comparable.
• A firm's leadership ranking relative to industry peers provides insight but does not specify improvement areas.
• That no further improvement is possible is unrealistic, as continuous improvement is a key principle in operations management.

References:

• Camp, R. C. (1989). "Benchmarking: The Search for Industry Best Practices that Lead to Superior Performance."
• Kaplan, R. S., & Norton, D. P. (1996). "The Balanced Scorecard: Translating Strategy into Action."