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A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
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Question 217 - CSCP discussion

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A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?

A.
Tighten the quality tolerances
Answers
A.
Tighten the quality tolerances
B.
Implement a supplier certification program
Answers
B.
Implement a supplier certification program
C.
Implement quality inspection at the receiving dock
Answers
C.
Implement quality inspection at the receiving dock
D.
Charge back to the supplier the rework and scrap costs
Answers
D.
Charge back to the supplier the rework and scrap costs
Suggested answer: B

Explanation:

Implementing a supplier certification program involves setting quality standards and certifying suppliers that meet these standards consistently. This proactive approach ensures that suppliers are capable of delivering quality products, reducing the occurrence of quality issues that disrupt production. Tightening quality tolerances and implementing inspection at the receiving dock are reactive measures that address issues after they occur, while charging back rework costs may strain supplier relationships. A supplier certification program promotes long-term quality improvement and fosters a collaborative relationship between the company and its suppliers.

Reference:

Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2019). Operations Management: Processes and Supply Chains. Pearson.

Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability and Supply Chain Management. Pearson.

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asked 16/09/2024
MC Chrys Darcy MASSALA MPIKA
34 questions
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