APICS Certified Supply Chain Professional (CSCP) — Question 208

In order to achieve economies of scale, a manufacturer is interested in producing large quantities. Which of the following functions of inventory will assist the manufacturer in achieving this goal?

Answer options

• A. Geographical specialization
• B. Decoupling
• C. Balancing supply and demand
• D. Buffering uncertainty

Correct answer: B

Explanation

The correct answer is B, Decoupling, as it allows production to continue without delays caused by variations in demand or supply, enabling large-scale manufacturing. Options A, C, and D do not specifically address the need for maintaining production efficiency at high volumes, which is central to achieving economies of scale.