APICS Certified Supply Chain Professional (CSCP) — Question 269

In supply chain management, a virtual organization is characterized primarily by:

Answer options

• A. use of collaborative process teams from across the supply chain.
• B. use of the internet to exchange data.
• C. maintenance of individual profit centers.
• D. empowered decision making at lower levels in the organization.

Correct answer: A

Explanation

The correct answer is A because a virtual organization relies on collaboration among teams from various parts of the supply chain to operate effectively. Options B, C, and D, while they may be relevant in different contexts, do not capture the essence of a virtual organization as effectively as option A does.