APICS Certified Supply Chain Professional (CSCP) — Question 228

Communication within the supply chain enables risk reduction by:

Answer options

• A. maximizing product family bullwhip effect.
• B. shrinking cycle times and synchronizing logistics.
• C. implementing supply chain event management (SCEM).
• D. recognizing and responding to demand changes.

Correct answer: D

Explanation

The correct answer, D, highlights that effective communication allows for timely recognition and response to demand fluctuations, which is critical for mitigating risks. Options A and B do not contribute to risk reduction; in fact, A increases risk by amplifying fluctuations, while B focuses on efficiency rather than risk. Option C, while beneficial, does not directly address the immediate need for responding to demand changes.