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Question 134 - CSCP discussion

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The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

A.
Continuous replenishment
Answers
A.
Continuous replenishment
B.
Advanced continuous replenishment
Answers
B.
Advanced continuous replenishment
C.
Vendor-managed replenishment
Answers
C.
Vendor-managed replenishment
D.
Quick response
Answers
D.
Quick response
Suggested answer: A

Explanation:

In a continuous replenishment strategy, the customer remains the sole decision-maker regarding order quantities. This strategy involves the supplier continuously replenishing inventory based on actual sales data provided by the customer, such as point-of-sale data. While the supplier manages the timing and quantity of replenishments to ensure that inventory levels are maintained, the ultimate decision on how much to order rests with the customer. This ensures that the customer's needs and preferences are directly reflected in the inventory levels.

Reference:

'Supply Chain Management: Strategy, Planning, and Operation' by Sunil Chopra and Peter Meindl

'Logistics and Supply Chain Management' by Martin Christopher

asked 16/09/2024
Aparecido Lemos
34 questions
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