APICS Certified Supply Chain Professional (CSCP) — Question 266

To maximize total supply chain profitability, supply chain participants typically must balance:

Answer options

• A. production lead times and shipment frequency.
• B. production lot sizes and supply chain inventory levels.
• C. total supply chain assets and profit margins.
• D. end-user sales levels and cash flows.

Correct answer: C

Explanation

The correct answer, C, emphasizes the need to balance total supply chain assets with profit margins to ensure long-term profitability. Options A and B focus on operational efficiencies rather than overall profitability, while D addresses cash flows and sales levels, which are important but do not directly relate to maximizing the supply chain's profitability.