APICS Certified Supply Chain Professional (CSCP) — Question 454

Allowing a trusted supplier to have direct access to information about a firm's on-hand inventory levels and sales rates can result in:

Answer options

• A. decreased reliance on forecasting.
• B. reduced product costs.
• C. improved operational efficiency.
• D. increased on-time delivery.

Correct answer: D

Explanation

The correct answer, D, indicates that direct access to inventory and sales data enables suppliers to better plan their deliveries, ensuring products arrive on schedule. Options A, B, and C, while potentially beneficial, do not specifically address the immediate impact on delivery timelines that comes from enhanced supplier visibility into inventory levels.