APICS Certified Supply Chain Professional (CSCP) — Question 169

What is the primary advantage of a blanket purchase order when compared to a standard purchase order?

Answer options

• A. Lower administrative costs
• B. Higher order accuracy
• C. Lower safety stock
• D. Faster cash-to-cash cycle time

Correct answer: A

Explanation

The primary advantage of a blanket purchase order is that it typically leads to lower administrative costs due to simplified purchasing processes and reduced paperwork. Other options like higher order accuracy and faster cash-to-cash cycle time may be benefits of different purchasing strategies or practices, but they are not the main advantage of a blanket purchase order.