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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:
The purpose of price differentiation is to:
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A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:
The primary risk associated with outsourcing innovative components to suppliers is:
The practice of supply chain members acting in close collaboration while retaining independent ownership is known as:
A company considers moving a portion of its production to a distant country to support a major customer. Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?
Which of the following elements of total quality management (TQM) results in a lower overall cost of the product?

Question 443 - CSCP discussion

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A warehouse supervisor has discovered a shortage of material to fulfill a customer order. If the inventory report shows that there should be enough material to fill the order, what should be done next?

A.
Ask the customer to provide safety lead time.
Answers
A.
Ask the customer to provide safety lead time.
B.
Review service level for the safety stock.
Answers
B.
Review service level for the safety stock.
C.
Perform daily inventory counts.
Answers
C.
Perform daily inventory counts.
D.
Analyze the root cause of inventory differences.
Answers
D.
Analyze the root cause of inventory differences.
Suggested answer: D

Explanation:

When a warehouse supervisor discovers a shortage of material despite inventory reports indicating sufficient stock, the next step should be to analyze the root cause of the discrepancy. This involves investigating potential errors in inventory records, theft, damage, misplacement, or inaccuracies in stock counts. Identifying and addressing the root cause ensures accurate inventory management and prevents future discrepancies, thereby improving order fulfillment reliability.

Reference:

'Inventory Management Best Practices.' ISM (Institute for Supply Management).

'Root Cause Analysis in Inventory Management.' APICS.

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asked 16/09/2024
Rio Ordonez
51 questions
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