Certification in Supplier Diversity Practice Exam

Which of the following factors influences the design of supply management structures?

1. Extent of advertisement presence in media

2. Geographical dispersion of facilities

3. Total employee population across locations

4. Duration of supplier contracts

The correct answer is: Geographical dispersion of facilities

The geographical dispersion of facilities is a crucial factor that influences the design of supply management structures. When facilities are spread out over various locations, supply management must take into consideration how to efficiently manage logistics, communication, and collaboration among these sites. A geographically diversified operation may require tailored supply chain strategies to address unique challenges, such as differences in local regulations, varying transportation routes, time zone variations, and the need for localized suppliers. A well-structured supply management system will aim to balance costs and efficiency while ensuring that all facilities are well-supported. In contrast, the other options, while important in certain contexts, do not directly impact the overall design of supply management structures to the same extent. The extent of advertisement presence in media relates more to marketing strategy than supply chain management, while the total employee population and duration of supplier contracts impact operational considerations but do not fundamentally dictate how supply management systems are structured across geographical locations.