APICS Certified Supply Chain Professional (CSCP) — Question 128

A group of trading partners that produce and distributes supplies to commercial and industrial customers has decided to pursue competitive advantage by being responsive to customers' needs. The most appropriate positioning of safety stock to support this initiative would be at:

Answer options

• A. a central warehouse for each market segment.
• B. the distribution centers (DCs) closest to the customers.
• C. each node in the distribution channel.
• D. each production facility.

Correct answer: B

Explanation

The correct answer is B because positioning safety stock at the distribution centers (DCs) near customers allows for quicker response times to meet their needs. Options A and D would result in longer lead times, while option C may lead to inefficiencies as not every node may require safety stock.