APICS Certified Supply Chain Professional (CSCP) — Question 227
Adopting a corporate strategy of increasing flexibility to meet unexpected demand requires a company to:
Answer options
- A. increase safety stock and reduce reserve capacity.
- B. increase safety stock and maintain reserve capacity.
- C. decrease safety stock and maintain reserve capacity.
- D. decrease safety stock and reduce reserve capacity.
Correct answer: B
Explanation
The correct answer is B because increasing safety stock provides a buffer against unexpected demand while maintaining reserve capacity allows the company to respond quickly when demand spikes. Options A, C, and D either reduce the buffer needed to meet demand or limit the company's ability to respond effectively, which undermines flexibility.