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Question 225 - CSCP discussion

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The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory. Which of the following tools needs to be implemented?

A.
Blanket purchase order
Answers
A.
Blanket purchase order
B.
Advanced planning and scheduling (APS)
Answers
B.
Advanced planning and scheduling (APS)
C.
Buy-back contracts
Answers
C.
Buy-back contracts
D.
Business-to-business integration software
Answers
D.
Business-to-business integration software
Suggested answer: B

Explanation:

Advanced planning and scheduling (APS) systems are designed to optimize production schedules, manage supply chain operations, and balance supply and demand. APS systems use algorithms and data to generate feasible and efficient production plans, considering constraints such as capacity, lead times, and demand variability. By accurately planning inventory needs, APS helps minimize stock-outs and reduces the risk of holding obsolete inventory. While tools like blanket purchase orders, buy-back contracts, and business-to-business integration software have their benefits, APS provides a comprehensive solution for aligning inventory levels with demand forecasts and production schedules.

Reference:

Vollmann, T. E., Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2005). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill Education.

Stadtler, H., & Kilger, C. (2008). Supply Chain Management and Advanced Planning: Concepts, Models, Software and Case Studies. Springer.

asked 16/09/2024
Alfred Macaraeg
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