CSCP practice questions, page 20 of 37, with answer review and explanations.
Question 96
Which of the following organizational design choices is an example of vertical integration?
Contracting with a third-party logistics provider
Producing components used internally
Externally staffing a customer service center
Awarding a one-time trade show contract
Question 97
A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?
Local distribution centers serving retailers and online sales
Centralized cross-docking facilities serving retailers and online sales
A centralized distribution center serving retailers and direct shipment from the factory serving online sales
A centralized distribution center serving retailers with transshipment arrangements serving online sales
Question 98
A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:
customer focus and alignment.
forecast accuracy.
multiple downstream channels.
multiple upstream supply chains.
Question 99
A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of which of the following strategies?
Selling and leasing back equipment.
Renting equipment on consignment.
Using a third-party logistics provider.
Using an owner-operator fleet.
Question 100
Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?