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Question 219 - CSCP discussion

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Variation in upstream requirements can be reduced by increasing:

A.
demand visibility.
Answers
A.
demand visibility.
B.
production capacity.
Answers
B.
production capacity.
C.
product features.
Answers
C.
product features.
D.
safety stock.
Answers
D.
safety stock.
Suggested answer: A

Explanation:

Variation in upstream requirements can be significantly reduced by increasing demand visibility. When all partners in the supply chain have clear and accurate information about actual demand, they can better align their production schedules and inventory levels, thus reducing the variability and uncertainty that lead to inefficiencies. Improved demand visibility helps in forecasting accuracy, better planning, and more responsive supply chain operations. Increasing production capacity, product features, or safety stock does not address the root cause of demand variability; instead, they are reactive measures that do not improve upstream stability.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill.

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

asked 16/09/2024
Easwari Lakshminarayanan
43 questions
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