APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 29

Which of the following inventory ordering techniques would a company's corporate warehouse utilize if it is interested in meeting both the quantity and timing requirements of demand from its regional warehouses?

Answer options

• A. Distribution requirements planning (DRP)
• B. Fixed order quantity/variable cycle
• C. Periodic review
• D. Kanban

Correct answer: D

Explanation

The correct answer is D, Kanban, as it is designed to manage inventory levels and flow efficiently, allowing for quick responses to both quantity and timing demands. The other options, while useful in various contexts, do not specifically focus on the simultaneous management of both quantity and timing in the same way that Kanban does.