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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 441 - CSCP discussion

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A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

A.
100% service levels for B and C
Answers
A.
100% service levels for B and C
B.
Customer B has higher service level
Answers
B.
Customer B has higher service level
C.
Customer C has higher service level
Answers
C.
Customer C has higher service level
D.
Customer B and C have same service level
Answers
D.
Customer B and C have same service level
Suggested answer: B

Explanation:

In a prioritized order fulfillment system, customers are served based on their priority. If customers A, B, and C are prioritized in that sequence, customer A will always have the highest service level, followed by B, then C. Since customer B is prioritized over C, customer B will have a higher service level compared to customer C. This prioritization affects the timeliness and reliability of order fulfillment for each customer.

Reference:

'Customer Prioritization in Supply Chain Management.' SCM World.

'Order Fulfillment Strategies.' APICS (Association for Supply Chain Management).

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asked 16/09/2024
Tony Minjarez
41 questions
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