APICS CSCP: Move portion of manufacturing to minimize the impact of natural disasters.

Question

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

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.

Answer

D. minimize the impact of natural disasters.

Explanation

The answer is D. minimize the impact of natural disasters.

Moving a portion of manufacturing to a second location can help to minimize the impact of natural disasters. If a natural disaster strikes one location, the company can still manufacture products at the other location. This can help to keep the company’s supply chain running and to meet customer demand.

The other options are less likely to be the reason why a company would move a portion of its manufacturing to a second location.

• A. Improve competitive advantage through economies of scale. While moving to a second location could reduce costs, it is unlikely that this would be the primary reason for doing so. Companies typically move to a second location to reduce risk or to improve customer service.
• B. Avoid manufacturing downtime due to material shortages. Moving to a second location could help to reduce the risk of manufacturing downtime due to material shortages. However, this is not the primary reason why companies move to a second location.
• C. Maximize security for customer shipments. Moving to a second location could help to improve security for customer shipments. However, this is not the primary reason why companies move to a second location.

Here are some of the benefits of moving a portion of manufacturing to a second location to minimize the impact of natural disasters:

• Increased resilience: By having manufacturing operations in multiple locations, companies can increase their resilience to disruptions caused by natural disasters.
• Reduced risk: By diversifying their manufacturing operations, companies can reduce their risk of being entirely shut down by a natural disaster.
• Improved customer service: By having manufacturing operations in multiple locations, companies can improve their ability to meet customer demand during and after a natural disaster.

Reference

• The Economic Argument For Moving Manufacturing (forbes.com)
• Manufacturing relocation through offshoring and backshoring: the case of Sweden | Emerald Insight
• Manufacturing Plant Relocation in 9 Steps (cmc-consultants.com)
• Advantages & Disadvantages of Maintaining Multiple Manufacturing Sites (chron.com)
• How To Choose a Location for Your New Manufacturing Plant – WDG Consulting
• Expanding With a Second Location – Entrepreneur.com | Entrepreneur
• How to Select the Location of Your New Manufacturing Plant | Formaspace

APICS Certified Supply Chain Professional CSCP certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the APICS Certified Supply Chain Professional CSCP exam and earn APICS Certified Supply Chain Professional CSCP certification.