APICS Certified Supply Chain Professional (CSCP) — Question 72

In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?

Answer options

• A. Obsolete inventory location
• B. Substitute producer
• C. Buffer from a customer demand
• D. Source of supply

Correct answer: C

Explanation

The correct answer, C, indicates that the distribution center acts as a buffer to manage variations in customer demand, ensuring the factory can operate smoothly. Options A and B do not accurately represent the primary functions of a DC, while D, although relevant, does not capture the essence of demand management.