APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 87

A company finds itself constantly expending its customer's retail store deliveries in order to prevent stock-outs. The best solution to this problem is to:

Answer options

• A. carry additional inventory to satisfy customer's demand.
• B. balance the supply of inventory with the demand.
• C. minimize the inventory risk of product obsolescence.
• D. increase inventory turns to the highest possible value.

Correct answer: D

Explanation

The correct answer is D, as increasing inventory turns means that stock is sold and replaced more frequently, reducing the likelihood of stock-outs. Options A and B do not directly address the need for efficient turnover, while option C focuses on obsolescence rather than stock availability.