APICS Certified Supply Chain Professional (CSCP) — Question 306

Which of the following terms refers to a supply chain management approach that attempts to gain a high degree of integration across the chain without compromising independent ownership?

Answer options

• A. Matrix structure
• B. Ad hoc structure
• C. Vertical integration
• D. Virtual integration

Correct answer: D

Explanation

The correct answer is D, as virtual integration allows companies to collaborate and share information while remaining independently owned. Options A and B do not specifically relate to the integration of supply chains, and C, vertical integration, involves merging different stages of production, which compromises independent ownership.