Certified Supply Chain Professional (CSCP) Practice Exam

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What three metrics are used to measure agility in supply chain?

  1. Cash-to-cash cycle, order fulfillment time, and dwell time

  2. Upside adaptability, downside adaptability, and overall value at risk

  3. Inventory turnover, on-time delivery, and customer satisfaction

  4. Lead time, production efficiency, and shipping costs

The correct answer is: Upside adaptability, downside adaptability, and overall value at risk

Measuring agility in supply chain management is critical for understanding how quickly and effectively a supply chain can respond to changes in the market, demand, and disruptions. The three metrics that encapsulate this concept are upside adaptability, downside adaptability, and overall value at risk. Upside adaptability reflects the supply chain's capability to expand and handle increased demand or sudden opportunities. This metric shows how well a supply chain can pivot when a market opportunity arises. Downside adaptability refers to the supply chain's resilience in the face of disruptions or decreases in demand. This metric is vital for assessing how well a supply chain can minimize losses and maintain performance during challenging times. Overall value at risk assesses the potential loss in the supply chain due to variability and uncertainties in the demand and supply environments. By evaluating this metric, organizations can gauge the risk factors influencing their agility, enabling them to develop strategies that enhance their responsiveness. In contrast, the other choices center on different aspects of supply chain performance. Cash-to-cash cycle, order fulfillment time, and dwell time primarily measure operational efficiency rather than agility. Inventory turnover, on-time delivery, and customer satisfaction focus on service levels and efficiency metrics. Lead time, production efficiency, and shipping costs deal with cost management and production processes rather than