APICS Certified Supply Chain Professional (CSCP) — Question 255

A company most likely would consider moving a portion of its manufacturing to a second location to:

Answer options

• A. improve competitive advantage through economies of scale.
• B. avoid manufacturing downtime due to material shortages.
• C. maximize security for customer shipments.
• D. minimize the impact of natural disasters.

Correct answer: D

Explanation

The correct answer is D because relocating manufacturing can help a company mitigate risks associated with natural disasters, ensuring continuity. Options A, B, and C, while valid considerations, do not directly relate to the primary reason for moving to a second location, which is disaster risk management.