APICS Certified Supply Chain Professional (CSCP) — Question 13

Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?

Answer options

• A. Direct shipment from plant to customers
• B. Shipment from a central distribution warehouse
• C. Shipment through a multi-echelon distribution network
• D. Outsourcing the distribution function

Correct answer: A

Explanation

Direct shipment from plant to customers minimizes handling and transportation time, leading to higher customer service levels. Other options, such as central warehouses and multi-echelon networks, may introduce delays and additional costs due to extra handling and storage requirements, while outsourcing may not guarantee the same service levels.