Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is considered a value-adding activity in a supply chain?

1. Excess inventory holding

2. Quality control processes

3. Underutilized labor

4. Frequent changeovers

The correct answer is: Quality control processes

Quality control processes are considered a value-adding activity in a supply chain because they contribute directly to ensuring that products meet the required standards and specifications before reaching the customer. This activity helps to minimize defects and rework, enhancing customer satisfaction and trust in the product. By identifying and addressing issues early in the production process, quality control helps to prevent costly errors and returns, thereby improving overall efficiency and effectiveness in the supply chain. In contrast, excess inventory holding, underutilized labor, and frequent changeovers do not add value in the same way. Excess inventory can lead to increased costs and waste, while underutilized labor signifies inefficiencies that impact productivity. Frequent changeovers may indicate a lack of process optimization or demand variability, leading to increased downtime and reduced throughput. Thus, quality control processes stand out as a proactive measure that directly enhances the value delivered to customers in a supply chain context.