APICS Certified Supply Chain Professional (CSCP) — Question 470

A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times.
Which of the following actions is most likely to reduce stockouts?

Answer options

• A. Assign personnel to manage the items.
• B. Standardize the items.
• C. Increase minimum inventory levels for the items.
• D. Initiate a vendor-managed inventory (VMI) program for the items.

Correct answer: C

Explanation

Increasing the minimum inventory levels for the items ensures that there is always a sufficient supply on hand, thereby reducing the risk of stockouts. While assigning personnel, standardizing items, or initiating a VMI program could help in managing inventory, they do not directly address the immediate need to maintain higher stock levels of critical items.