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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 298 - CSCP discussion

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A company distributes its products through wholesale, retail stores, and its e-commerce website. Inventory and demand forecasting for each channel is managed separately. The company is experiencing high levels of obsolete inventory. Which of the following strategies is most likely to reduce the levels of obsolescence?

A.
Place smaller orders with suppliers.
Answers
A.
Place smaller orders with suppliers.
B.
Pool inventory and the forecast.
Answers
B.
Pool inventory and the forecast.
C.
Open more outlet stores.
Answers
C.
Open more outlet stores.
D.
Negotiate lower costs with suppliers.
Answers
D.
Negotiate lower costs with suppliers.
Suggested answer: B

Explanation:

Pooling inventory and demand forecasts across different distribution channels can help reduce obsolescence by providing a more accurate and holistic view of demand. This strategy allows the company to balance inventory levels more effectively, reducing excess stock and minimizing the risk of products becoming obsolete. Managing inventory and forecasts separately for each channel often leads to discrepancies and inefficiencies, whereas pooling helps optimize overall inventory levels. Options A, C, and D may offer some benefits but are less effective in addressing the core issue of high obsolete inventory.

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

https://www.supplychaindive.com

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asked 16/09/2024
Baran Kilic
34 questions
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