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Question 211 - CSCP discussion

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Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

A.
Sharing demand information
Answers
A.
Sharing demand information
B.
Placing large orders to obtain lower prices
Answers
B.
Placing large orders to obtain lower prices
C.
Reducing the number of deliveries
Answers
C.
Reducing the number of deliveries
D.
Maintaining increased inventories
Answers
D.
Maintaining increased inventories
Suggested answer: A

Explanation:

The synchronization of supply and demand across a supply chain is critically dependent on the transparency and flow of demand information. Sharing demand information ensures that all parties in the supply chain, including suppliers, manufacturers, and distributors, have visibility into the actual market demand. This visibility helps in aligning production schedules, inventory levels, and delivery plans with real-time demand, reducing the bullwhip effect, and enhancing responsiveness and efficiency. Placing large orders, reducing the number of deliveries, or maintaining increased inventories may offer some benefits, but they do not directly facilitate the alignment of supply with actual demand.

Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.

Stadtler, H., Kilger, C., & Meyr, H. (2015). Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies. Springer.

asked 16/09/2024
Kumar, Manivannan
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