APICS Certified Supply Chain Professional (CSCP) — Question 19

A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?

Answer options

• A. Provides smaller lot sizes
• B. Provides components with short lead times
• C. Provides Just in Time deliveries
• D. Provides information about impending shifts in the economy

Correct answer: B

Explanation

The correct answer is B because having direct communication with lower-tier suppliers allows for quicker response times and faster lead times for components. The other options, while beneficial, do not directly relate to the speed of delivery as much as option B does.