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Question 8 - CSCP discussion

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A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to:

A.
extend forecast horizon.
Answers
A.
extend forecast horizon.
B.
increase distribution safety stock targets.
Answers
B.
increase distribution safety stock targets.
C.
increase manufacturing throughput.
Answers
C.
increase manufacturing throughput.
D.
increase demand visibility with all partners.
Answers
D.
increase demand visibility with all partners.
Suggested answer: D

Explanation:

The most appropriate way to address the variability of demand is to increase demand visibility with all partners. Demand visibility is the ability to access and share accurate and timely information on customer demand and market conditions across the supply chain1. Increasing demand visibility with all partners can help address the variability of demand by enabling better forecasting, planning, and coordination of supply chain activities23. Increasing demand visibility can also help reduce the bullwhip effect, which is the amplification of demand fluctuations as they move upstream in the supply chain4.

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asked 16/09/2024
Sanjay R Khiani
42 questions
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