APICS Certified Supply Chain Professional (CSCP) — Question 76

A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to:

Answer options

• A. extend forecast horizon.
• B. increase distribution safety stock targets.
• C. increase manufacturing throughput.
• D. increase demand visibility with all partners.

Correct answer: D

Explanation

Increasing demand visibility with all partners allows for better communication and coordination in response to demand fluctuations, making it the most effective strategy. The other options, such as extending the forecast horizon or increasing safety stock, may not directly address the root of demand variability and could lead to higher costs or excess inventory without improving responsiveness.