APICS Certified Supply Chain Professional (CSCP) — Question 12

Direct shipment distribution typically offers which of the following advantages?

Answer options

• A. Risk pooling is facilitated.
• B. Demand variability is reduced.
• C. Service levels are increased.
• D. Lead times are reduced.

Correct answer: D

Explanation

Direct shipment distribution is known for reducing lead times as products are sent directly from the supplier to the customer, eliminating intermediate steps. While advantages like risk pooling, reduced demand variability, and increased service levels can occur, they are not the primary benefits of direct shipment, making option D the correct choice.