APICS Certified Supply Chain Professional (CSCP) — Question 509

A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks. Which of the following supply chain strategies would be most appropriate for the two product families?

Answer options

• A. Produce both product families to forecast and push through the distribution system.
• B. Produce both product families only after receipt of a distributor order.
• C. Produce the current product family to forecast and the new product family to order.
• D. Produce the current product family to order and the new product family to forecast.

Correct answer: C

Explanation

Option C is correct because it allows the company to manage demand for the established product family effectively by forecasting, while also meeting the potentially variable demand for the new health-oriented product family by producing it to order. The other options either overproduce the new line without understanding demand or do not utilize forecasting effectively for the existing products, which could lead to inefficiencies.