APICS Certified Supply Chain Professional (CSCP) — Question 21

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:

Answer options

• A. customer focus and alignment.
• B. forecast accuracy.
• C. multiple downstream channels.
• D. multiple upstream supply chains.

Correct answer: D

Explanation

The correct answer is D, as the company is leveraging multiple upstream supply chains to adapt their production line based on demand fluctuations. Options A and B do not capture the essence of adjusting production strategies, while option C focuses on distribution rather than supply chain flexibility.