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Question 260 - CSCP discussion

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The use of standardized components typically results in:

A.
increased planning and control efforts to avoid shortages.
Answers
A.
increased planning and control efforts to avoid shortages.
B.
fewer inventory items and inventory levels.
Answers
B.
fewer inventory items and inventory levels.
C.
more items, larger bills of material (BOMS), and increased material requirements planning (MRP) run time.
Answers
C.
more items, larger bills of material (BOMS), and increased material requirements planning (MRP) run time.
D.
smaller bills of materials, fewer routings, and fewer manufacturing orders.
Answers
D.
smaller bills of materials, fewer routings, and fewer manufacturing orders.
Suggested answer: B

Explanation:

The use of standardized components typically leads to fewer inventory items and inventory levels due to the following reasons:

Simplification of Inventory Management: Standardized components reduce the variety of parts needed, simplifying inventory management.

Economies of Scale: Purchasing standardized components in larger quantities can reduce costs and streamline procurement processes.

Reduced Stock Keeping Units (SKUs): Fewer unique components mean fewer SKUs to manage, which simplifies tracking and storage.

Inventory Reduction: With standardized parts, companies can maintain lower safety stock levels due to more predictable usage patterns.

Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management. McGraw-Hill.

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

asked 16/09/2024
Garwin Liu
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