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Question 240 - CSCP discussion

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A high level of which of the following attributes is considered to be undesirable in a supply chain?

A.
Velocity
Answers
A.
Velocity
B.
Variability
Answers
B.
Variability
C.
Visibility
Answers
C.
Visibility
D.
Variety
Answers
D.
Variety
Suggested answer: B

Explanation:

In a supply chain, a high level of variability is undesirable because:

Demand Uncertainty: High variability in demand makes forecasting difficult, leading to inventory imbalances.

Production Disruptions: Variability in production processes can cause delays, affecting the entire supply chain.

Increased Costs: Managing variability often requires holding higher safety stocks, leading to increased holding costs.

Service Level Impacts: Variability can cause stockouts or overstock situations, negatively impacting customer service levels.

Complexity in Coordination: High variability complicates planning and coordination efforts across the supply chain, reducing overall efficiency.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

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

asked 16/09/2024
Samya Sharab
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