APICS Certified Supply Chain Professional (CSCP) — Question 333

A manufacturing company produces equipment in which several subassemblies are now also required for sale as replacement parts. To satisfy both types of demand, the company should first:

Answer options

• A. review their part numbering and bills of material (BOMs) to identify the subassemblies differently when sold as an end-item.
• B. review the production process to determine the cost to produce the subassemblies when sold as an end-item.
• C. review the timing and quantity requirements for the subassemblies demand for production versus when sold as an end-item.
• D. review the warehouse system to ensure that subassemblies for production can be segregated from those to be sold as an end-item.

Correct answer: C

Explanation

The correct answer is C because understanding the timing and quantity requirements is crucial for balancing production and sales of subassemblies. Options A, B, and D focus on other aspects of the process but do not address the immediate needs of coordinating production and sales demands effectively.