APICS Certified Supply Chain Professional (CSCP) — Question 82

In an assemble-to-order (ATO) environment, the most assured means to achieving sustained higher fill rates is to focus on which of the following policies?

Answer options

• A. Safety stock
• B. Postponement
• C. Expediting
• D. Product portfolio

Correct answer: B

Explanation

The correct answer is B, Postponement, as it allows for the delay of final assembly until customer orders are received, thus improving fill rates by better matching inventory with demand. The other options, while useful, do not specifically address the need for flexibility and responsiveness to customer orders as effectively as Postponement does.