APICS Certified Supply Chain Professional (CSCP) — Question 154
A company has adequate average available capacity but does not maintain surge capacity. With a distribution route to manage, which of the following actions will provide the most capacity relief?
Answer options
- A. Increasing order-fulfillment lead times
- B. Implementing allocation
- C. Increasing prices with a 30-day effective date
- D. Increasing product queue times
Correct answer: A
Explanation
Increasing order-fulfillment lead times allows the company to spread out demand over a longer period, effectively reducing immediate capacity strain. The other options, such as implementing allocation or increasing prices, may not significantly relieve capacity pressures or could lead to customer dissatisfaction, while increasing product queue times would likely exacerbate the issue rather than alleviate it.