APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 71

A computer manufacturer has a single distribution center (DC) that ships personal computers to the USA, Germany, Brazil, and Australia. The computer power supplies are added at the distribution center.

This kitting process is an example of:

Answer options

• A. globalization.
• B. postponement.
• C. distribution requirements planning (DRP).
• D. final assembly schedule (FAS).

Correct answer: A

Explanation

The correct answer is A, globalization, as it involves the manufacturer distributing products across multiple countries. The other options refer to different logistics strategies; postponement involves delaying final assembly until demand is known, DRP is a planning method for inventory and distribution, and FAS focuses on scheduling assembly to meet production needs.