APICS Certified Supply Chain Professional (CSCP) — Question 197

Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?

Answer options

• A. Providing smaller lot sizes
• B. Providing vendor-managed inventory (VMI) capabilities
• C. Providing just-in-time (JIT) deliveries
• D. Providing information about impending shifts in the economy

Correct answer: B

Explanation

The correct answer is B because vendor-managed inventory (VMI) allows manufacturers to streamline inventory management and reduce costs. While smaller lot sizes (A), just-in-time deliveries (C), and economic insights (D) are beneficial, they do not provide the same operational efficiencies and control that VMI offers.