APICS Certified Supply Chain Professional (CSCP) — Question 265

Before discontinuing a product based on costs, one should primarily consider the effects upon:

Answer options

• A. research and development (R&D) costs of new products,
• B. overhead absorption rates across product lines,
• C. value stream mapping of complementary products,
• D. the cost of other products in the portfolio.

Correct answer: D

Explanation

The correct answer is D because discontinuing a product can affect the overall profitability of the portfolio, especially if other products rely on it. Options A, B, and C focus on aspects that, while important, do not directly address the broader implications of discontinuing a product on the entire product portfolio.