APICS Certified Supply Chain Professional (CSCP) — Question 373

A practical way to eliminate an unprofitable customer is to:

Answer options

• A. establish a tiered pricing structure based on service levels and refuse to discount premier service
• B. increase product price by 30% to 50% within 3 to 6 months of the customer's initial order
• C. ask the customer to order products in much higher quantities than they typically do
• D. gradually reduce the quality of customer service

Correct answer: A

Explanation

Option A is correct because implementing a tiered pricing structure allows the business to prioritize profitable customers while maintaining service quality for top-tier clients. Options B, C, and D do not effectively address the profitability issue and may lead to customer dissatisfaction or operational inefficiencies.