APICS Certified Supply Chain Professional (CSCP) — Question 229

A North American manufacturer of consumer goods expands its market to include Europe. Customization currently is done in the North American manufacturing facility. Which of the following new processes should the manufacturer use to eliminate inventory imbalances of customized products?

Answer options

• A. Mixing
• B. Postponement
• C. Stockpiling
• D. Spot stocking

Correct answer: B

Explanation

The correct answer is 'Postponement' because it allows for the delay of final product customization until customer demand is known, thus reducing the risk of excess inventory. The other options, such as 'Stockpiling' and 'Spot stocking', do not effectively address the issue of inventory imbalances for customized products.