APICS CSCP Dumps Questions Answers

• Context: Companies often prioritize service levels based on the profitability of their products.
• Options Breakdown:
• Correct Answer Justification: Companies aim to maintain higher service levels for high-margin products to maximize profitability and customer retention.

References:

• Supply chain management textbooks
• Industry practices on service level prioritization

A flexible supply chain strategy is designed to respond quickly and efficiently to changing market conditions and customer needs. Providing the highest-quality service aligns well with a flexible supply chain strategy, as it requires the ability to adapt to customer demands, handle customization, and ensure quick response times. This level of service often necessitates a supply chain that can pivot rapidly and handle variability without sacrificing quality, making flexibility a critical component.

References

• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
• Lee, H. L. (2004). The Triple-A Supply Chain. Harvard Business Review, 82(10), 102-113.

Risk pooling helps reduce total inventory levels without affecting service levels by leveraging the principle that aggregate demand is more stable and predictable than disaggregate demand. Here’s the rationale:

• Inventory turnover ratio: Lowering the ratio does not directly relate to risk pooling.
• Aggregate demand: Combining demand across multiple locations or products reduces variability, leading to lower safety stock requirements and overall inventory levels.
• Planning time fence: Adjusting this does not directly impact risk pooling principles.
• Supplier risk sharing: While beneficial, it is not the primary principle of risk pooling. By pooling risks, the variability of aggregate demand is reduced, allowing for lower inventory levels while maintaining service levels.

References

• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.
• Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain.