APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 77

A retailer choosing to build additional inventory of snow shovels in a specific geographic area potentially impacted by an approaching snowstorm is an example of what type of positioning strategy?

Answer options

• A. Slotting
• B. Cross-docking
• C. Spot stocking
• D. Hedge stocking

Correct answer: D

Explanation

The correct answer is D, Hedge stocking, as it refers to the strategy of preparing for potential demand spikes due to unforeseen events, such as a snowstorm. The other options like Slotting and Cross-docking pertain to inventory management and logistics, but do not directly address the proactive stocking in anticipation of specific weather-related demand.