CTSC practice question 18 of 25

Which of the following trends is a driver for change in agile operations execution?

Full set: 151 questions
Answer options
A: Research and development (R&D) cycles are fast and inexpensive.
B: Products are becoming less complex and using less raw materials.
C: Product labeling is becoming more enhanced, including translation into additional languages. Correct answer
D: The requirements for transaction documentation, including use of blockchain, are decreasing.
Correct Answer:
C. Product labeling is becoming more enhanced, including translation into additional languages.
Explanation

Agile operations are designed to respond quickly to market volatility and changing customer requirements. Enhanced product labeling, including multiple languages, is a direct result of globalization, increased regulation, and market customization. This trend increases product complexity and the number of stock-keeping units (SKUs), requiring operations to be more flexible and responsive to manage frequent changes and diverse product versions. This directly drives the need for agility in execution.

Why Incorrect

A. Research and development (R&D) cycles are generally becoming more complex and costly, not faster and inexpensive, which pressures supply chains differently.
B. Products are generally becoming more complex (e.g., smart devices, customized goods), not less, which is a primary driver for supply chain agility.
D. Transaction documentation and traceability requirements are increasing, driven by regulations and technologies like blockchain, not decreasing.

References

1. Christopher, M. (2016). Logistics & Supply Chain Management (5th ed.). Pearson. Chapter 8, "Managing the agile supply chain," identifies market turbulence and the demand for variety and customization as key drivers for agility.

2. Gligor, D. M., & Holcomb, M. C. (2012). Understanding the role of logistics capabilities in achieving supply chain agility: a systematic literature review. Supply Chain Management: An International Journal, 17(4), 438-453. https://doi.org/10.1108/13598541211246594. This review identifies increasing product variety as a key environmental driver for agility.

3. APICS CTSC Learning System, Module 2, Section B, Chapter 1, "Agile and Lean." Discusses how market volatility and the need for customization drive the adoption of agile strategies.

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