Certified Supply Chain Professional (CSCP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Supply Chain Professional (CSCP) Exam with an interactive quiz that assesses your knowledge through flashcards and multiple-choice questions. Each question includes hints and detailed explanations to reinforce your learning and help you get ready for the test.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What characterizes a stepwise lag strategy?

Expanding in real-time with demand
Expanding in steps ahead of demand
Expanding in steps that are sometimes behind demand
Expanding in steps behind demand

The correct answer is: Expanding in steps behind demand

A stepwise lag strategy is characterized by expanding capacity in response to a delay relative to actual demand. This means that the expansion occurs systematically after assessing current demand conditions, leading to a situation where the response may not be immediate or fully aligned with current market needs. This approach is often used to manage risk associated with overexpansion and the costs that come with it. Choosing to expand capacity in steps that are behind demand allows businesses to avoid the pitfalls of overestimating future demand and committing resources prematurely. This strategy aims to provide a balance between meeting future demand and maintaining efficiency and cost-effectiveness in operations. When demand fluctuates, this approach enables organizations to adjust their capacities more conservatively and strategically.