APICS Certified Supply Chain Professional (CSCP) — Question 385

A firm supplies products using three strategies: make-to-order (MTO), make-to-stock (MTS), and assemble-to-order (ATO). The manufacturing facility frequently makes last-minute production schedule changes in an attempt to meet customer orders. Which of the following policies should the firm Implement to reduce the number of production schedule changes?

Answer options

• A. Sales and operations planning (S&OP)
• B. Time-phased order points (TPOPs)
• C. Capacity requirements planning (CRP)
• D. Demand time fences (DTFs)

Correct answer: D

Explanation

Implementing Demand time fences (DTFs) helps to set clear boundaries regarding when changes to orders can occur, allowing for better planning and minimizing last-minute adjustments. The other options, while beneficial for different aspects of production management, do not specifically target the reduction of production schedule changes as effectively as DTFs do.