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Question 377 - CSCP discussion

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A distribution requirements planning (DRP) system it implemented to primary to monitor or manage:

A.
supplier capacity
Answers
A.
supplier capacity
B.
customer demand
Answers
B.
customer demand
C.
inventory replenishment
Answers
C.
inventory replenishment
D.
demand variation
Answers
D.
demand variation
Suggested answer: C

Explanation:

Distribution Requirements Planning (DRP) is primarily implemented to monitor and manage inventory replenishment:

Inventory Levels: DRP helps in maintaining optimal inventory levels across distribution networks by determining the required quantities and timing of stock replenishments.

Demand Forecasting: It uses demand forecasts to plan inventory requirements, ensuring that customer demands are met without overstocking.

Order Scheduling: DRP schedules orders to replenish inventory based on forecasted demand and current stock levels, improving supply chain efficiency.

Supply Chain Coordination: It enhances coordination between manufacturing and distribution centers, ensuring a smooth flow of goods.

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

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning.

asked 16/09/2024
Miroslav Vukic
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