APICS Certified Supply Chain Professional (CSCP) — Question 123

Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

Answer options

• A. Outbound transportation cost is reduced.
• B. Inventory velocity is reduced.
• C. Order-fill rates are reduced.
• D. Inventory obsolescence is reduced.

Correct answer: D

Explanation

Using direct shipping minimizes inventory obsolescence because products are delivered directly to customers, reducing the time items spend in storage. The other options suggest negative impacts on costs and efficiency, which are not typically associated with direct shipping methods.