Question 148 - CPIM-Part-2 discussion

A bill of distribution is a document that specifies the planned channels of inventory disbursement from one or more sources to field warehouses. A bill of distribution is similar to a bill of materials, but it applies to the distribution stage rather than the production stage. A bill of distribution helps to optimize the inventory level, reduce transportation costs, and improve customer service. A bill of distribution considers the factors such as demand patterns, lead times, costs, and capacities of the sources and warehouses.

The other options are not documents that specify the planned channels of inventory disbursement from one or more sources to field warehouses. A supply chain community is a network of organizations that collaborate and coordinate their activities to deliver products or services to customers. A supply chain community includes suppliers, manufacturers, distributors, retailers, and customers. A supply chain community helps to improve the visibility, efficiency, and responsiveness of the supply chain. Interplant demand is the demand for a product or component that is generated by another plant within the same organization. Interplant demand is usually transferred through internal orders or shipments. Interplant demand helps to balance the capacity and resources among different plants. Logistics data interchange (LDI) is a system that enables the exchange of information and documents among different parties involved in the logistics process. LDI uses electronic data interchange (EDI) or other technologies to transmit data such as orders, invoices, shipment notices, and tracking information. LDI helps to improve the accuracy, speed, and security of the logistics transactions.Reference: CPIM Exam Content Manual Version 7.0, Domain 7: Plan and Manage Distribution, Section 7.1: Distribution Planning Concepts, p. 40; Bill of Distribution; Supply Chain Community.