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Question 11 - CSCP discussion

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When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service?

A.
Availability
Answers
A.
Availability
B.
Delivery time
Answers
B.
Delivery time
C.
Service reliability
Answers
C.
Service reliability
D.
Service recovery
Answers
D.
Service recovery
Suggested answer: A

Explanation:

Controlling stockout frequency directly addresses the attribute of customer service known as availability. Here's why:

Stockouts: A stockout occurs when inventory is insufficient to meet customer demand, leading to lost sales and dissatisfied customers.

Product Availability: Ensuring that products are available when customers need them is crucial for maintaining high service levels and customer satisfaction.

Service Level: High availability indicates a high service level, reducing the likelihood of stockouts and improving customer trust and loyalty.

Inventory Management: Effective inventory management strategies aim to balance stock levels to meet demand while minimizing stockouts and excess inventory.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management. McGraw-Hill.

asked 16/09/2024
Muhammad Imran
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