APICS Certified Supply Chain Professional (CSCP) — Question 354
A group of trading partners manufactures and distributes products. An increase in which of the following factors is most likely to result in an increase in the retailer's supply variability?
Answer options
- A. Product simplification
- B. Retailer replenishment order quantities
- C. Manufacturer's defect rate
- D. Distributor replenishment frequency
Correct answer: B
Explanation
An increase in retailer replenishment order quantities can lead to greater variability in supply as it can cause fluctuations in inventory levels and demand forecasting. In contrast, product simplification tends to reduce variability, a high defect rate from manufacturers can impact quality but not directly supply variability, and distributor replenishment frequency relates to timing rather than quantity ordered.