APICS Certified Supply Chain Professional (CSCP) — Question 250

Which of the following tools would best aid a company in selecting new site locations for manufactured and distributed stock keeping units (SKUs)?

Answer options

• A. Distribution requirements planning (DRP)
• B. Reorder point (ROP) system
• C. Transportation management system (TMS)
• D. Network optimization

Correct answer: D

Explanation

Network optimization is specifically designed to evaluate and improve the efficiency of distribution networks, making it the best choice for selecting new site locations. Distribution requirements planning (DRP) and reorder point (ROP) systems focus on inventory management rather than site selection. A transportation management system (TMS) helps manage logistics and transportation, which is important but not directly related to site location decisions.