APICS Certified Supply Chain Professional (CSCP) — Question 261
Which of the following techniques typically is most effective for controlling variability of demand in a supply chain?
Answer options
- A. Holding consignment inventory at a customer's location
- B. Holding additional stock at the distributor
- C. Closer monitoring of product promotions at the retailer
- D. Centralizing demand information
Correct answer: D
Explanation
Centralizing demand information allows for better forecasting and coordination across the supply chain, reducing variability. While holding consignment inventory, additional stock, and monitoring promotions can help, they don't address the root cause of demand variability as effectively as centralizing information does.