APICS Certified Supply Chain Professional (CSCP) — Question 520

Which of the following outcomes is achieved through the reduction in the number of a firm's suppliers?

Answer options

• A. Supplier operational integration
• B. Supply localization
• C. Volume consolidation
• D. Value management

Correct answer: C

Explanation

The correct answer is C, Volume consolidation, as reducing the number of suppliers typically allows a firm to consolidate its purchasing volume with fewer partners, leading to better pricing and efficiency. The other options, while relevant to supplier management, do not directly relate to the outcome of reducing the number of suppliers.