APICS Certified Supply Chain Professional (CSCP) — Question 331

Deciding whether to add a tier or echelon in an existing supply chain requires balancing the advantages of being closer to customers and:

Answer options

• A. channel efficiency.
• B. customer service levels.
• C. production capacities.
• D. quality metrics.

Correct answer: A

Explanation

The correct answer is A, as channel efficiency is crucial for optimizing logistics and reducing costs when adding a new tier. While customer service levels, production capacities, and quality metrics are important, they do not directly relate to the operational efficiency that channel efficiency offers in the context of supply chain management.