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…

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

1. Order the maturity stages: Ad-hoc, then Typical, then Advanced, then Leading.
2. Ad-hoc and Typical stages involve occasional or periodic manual network studies.
3. Advanced involves regular, model-based redesign that is still triggered by people.
4. 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.