CTSC practice question 4 of 25

A firm wants to update its supply chain network design to enable auto re-sizing based on changes in product flow within the network. This update will place the firm at what stage in the Capability Maturity Model within Supply Network Design?

Full set: 151 questions

Answer options

A: Advanced

B: Typical

C: Ad-hoc

D: Leading Correct answer

Correct Answer:

D. Leading

Explanation

In the CTSC Capability Maturity Model for Supply Network Design, the Leading (Level 4) stage is characterized by self-optimizing, dynamically re-configurable networks that automatically resize capacity and flow in response to demand or product-mix changes. Updating the network design to enable auto-resizing therefore lifts the firm directly into the Leading maturity level.

Why Incorrect

A. Advanced level provides scenario-based optimization but not automatic self-adjustment.
B. Typical level relies on periodic, manual network reviews.
C. Ad-hoc level lacks formalized design processes entirely.

References

1. ASCM CTSC Learning System 2023, Module 2, Table 2-4 “Supply Network Design Maturity Levels,” p. 2-25.

2. Stanford GSB SCM Course “Network Optimization,” Week 6 notes, p. 4.

3. Ketokivi & Mahoney, “Supply Chain Design as a Capability,” Journal of Operations Management, 2020, pp. 5-6, https://doi.org/10.1016/j.jom.2020.101067.

Question breakdown

Tests: Apply the Capability Maturity Model to supply network design
Difficulty: Medium

Key idea: Network design that automatically re-sizes in response to changing product flows is dynamic and self-adjusting, which marks the highest maturity level, Leading.

How to reach the answer

Order the maturity stages: Ad-hoc, then Typical, then Advanced, then Leading.
Ad-hoc and Typical stages involve occasional or periodic manual network studies.
Advanced involves regular, model-based redesign that is still triggered by people.
The clue 'auto re-sizing based on changes in product flow' means continuous, automated adaptation, which is Leading.

Each option

AIncorrect. Advanced maturity uses regular modeling but does not automatically re-size the network as flows change.
BIncorrect. Typical maturity relies on periodic, largely manual network reviews.
CIncorrect. Ad-hoc is the lowest stage, with reactive and unstructured network design.
DCorrect. Automated, flow-driven re-sizing reflects the most mature, Leading stage.

Common trap: Advanced sounds like the top level, so candidates stop there without recognizing that automation goes one step further.

In practice: Firms with digital twins and continuous network optimization tools aim for Leading maturity, adjusting capacity and node roles as demand shifts.

Remember: Automation and self-adjustment in network design indicate Leading maturity.

Drafted with AI assistance and checked against the answer key.

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