APICS Certified Supply Chain Professional (CSCP) — Question 321

A company's competitive advantage is product differentiation. The company has multiple new products with unique features targeted to various customer groups.
It plans to sell its products via retail channels and online. One of the activities the company should focus on first when determining inventory levels for each product is:

Answer options

• A. identifying and documenting each market segment's need
• B. planning equivalent inventory levels for each product
• C. setting price points for each product
• D. determining inventory levels at retail outlets

Correct answer: A

Explanation

The correct answer is A because understanding the needs of each market segment is crucial for tailoring inventory levels effectively. The other options, while important, do not address the immediate requirement of aligning inventory with specific customer demands, which is essential for successful product differentiation.