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Exam CSCP topic 1 question 147 discussion

Actual exam question from APICS's CSCP
Question #: 147
Topic #: 1
[All CSCP Questions]

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.
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Suggested Answer: D 🗳️

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saey
4 months ago
How do you know that this company has a risk of natural disaster for their current manufacturing facility? Shouldn't the answer be A?
upvoted 4 times
kevinjjjj
1 week, 6 days ago
You cannot achieve economies of scale when you split volumes into two locations. You can achieve economies of scale when you combine two or more locations into one location, therefore increasing the total volume of goods.
upvoted 1 times
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C (25%)
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