APICS Certified Supply Chain Professional (CSCP) — Question 300

The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory. Which of the following tools needs to be implemented?

Answer options

• A. Blanket purchase order
• B. Advanced planning and scheduling (APS)
• C. Buy-back contracts
• D. Business-to-business integration software

Correct answer: B

Explanation

The correct answer is B, as Advanced Planning and Scheduling (APS) tools help optimize inventory levels and forecast demand, thereby minimizing stock-outs and obsolete inventory. Options A, C, and D do not directly address the issues of stock management and demand forecasting as effectively as APS does.