APICS Certified Supply Chain Professional (CSCP) — Question 116

A manufacturer's inventory levels are growing and service levels are dropping. Which of the following supply chain strategies is most appropriate to reduce inventory and improve service?

Answer options

• A. Increase the safety stock on all items.
• B. Reduce the setup time.
• C. Optimize the total cost.
• D. Implement batch operations.

Correct answer: B

Explanation

Reducing setup time allows for more flexible and efficient production processes, which can help minimize inventory while meeting service demands. Increasing safety stock would likely worsen inventory issues, while optimizing total cost does not directly address inventory levels. Implementing batch operations could lead to larger inventory builds, which would not improve service levels.