Strategic Supply Chain Management Practice Exam

In which phase would a company decide on the allocation of resources across various locations?

1. Supply Chain Planning

2. Supply Chain Operations

3. Supply Chain Strategy and Design

4. Supply Chain Execution

The correct answer is: Supply Chain Strategy and Design

The phase in which a company decides on the allocation of resources across various locations is Supply Chain Strategy and Design. This phase involves establishing the framework and overall direction for the supply chain. It includes crucial decisions about the location of production facilities, distribution centers, and warehouses, aligning these choices with the company’s strategic objectives. During this phase, companies analyze factors such as transportation costs, labor availability, market access, and logistical efficiency to determine the optimal distribution of resources. The decisions made here lay the groundwork for how the supply chain operates in later phases. In contrast, Supply Chain Planning focuses on creating actionable plans that consider resource allocation but does not specifically define the physical distribution or design of resources across locations. Supply Chain Operations refers to the day-to-day functions that handle the execution of plans, while Supply Chain Execution pertains to managing the flow of goods from point of origin to the customer. These later phases do not involve the strategic-level decisions about resource allocation that are characteristic of the Supply Chain Strategy and Design phase.