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APICS Exam CSCP Topic 5 Question 104 Discussion

Actual exam question for APICS's CSCP exam
Question #: 104
Topic #: 5
[All CSCP Questions]

Overall supply chain risk may be increased by implementing which of the following strategies?

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Suggested Answer: A

Single sourcing a high-profit product increases overall supply chain risk due to several reasons:

Supplier Dependency: Relying on a single supplier for a critical product creates a high dependency, making the supply chain vulnerable to disruptions if that supplier faces issues (e.g., natural disasters, financial instability).

Lack of Alternatives: Without alternative sources, any disruption can lead to significant delays, shortages, and potential loss of revenue.

Negotiation Leverage: Single sourcing can reduce the buyer's negotiation leverage, potentially leading to higher costs or unfavorable terms.

Outsourcing unsuitable products, identifying multiple sources for risk-prone products, and internally manufacturing IP-sensitive products are strategies to mitigate risk, not increase it.


Chopra, Sunil, and Peter Meindl. 'Supply Chain Management: Strategy, Planning, and Operation.' Pearson.

Harland, Christine, Richard Brenchley, and Helen Walker. 'Risk in Supply Networks.' Journal of Purchasing and Supply Management.

Contribute your Thoughts:

Gilma
7 days ago
I think the answer is C.
upvoted 0 times
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