Exam CSCP topic 1 question 551 discussion

The correct answer is D. Virtual integration. Explanation: Virtual integration involves collaborating closely with partners along the supply chain to achieve a high level of coordination and information sharing without actually owning or merging with those companies. This allows for greater efficiency and control over the supply chain without the drawbacks of full vertical integration.

Virtual integration is a concept where different entities in the supply chain, such as suppliers, manufacturers, distributors, and retailers, collaborate closely and share information and processes to achieve greater coordination and efficiency.

The term that refers to a supply chain management approach that attempts to gain a high degree of integration across the chain without compromising independent ownership is virtual integration. This is mentioned in M6, where virtual organizations are defined as short-term alliances between independent organizations in a potentially long-term relationship to design, produce, and distribute a product. Organizations cooperate based on mutual values and act as a single entity to third parties. Therefore, option D is the correct answer.