APICS Certified Supply Chain Professional (CSCP) — Question 96

One of the key benefits of adopting a lean supply chain philosophy is the reduction of inventories that allow:

Answer options

• A. decreased obsolescence.
• B. freeing up working capital for investment.
• C. reduced material handling surcharges.
• D. lower transaction costs.

Correct answer: B

Explanation

The correct answer, B, highlights that reducing inventories allows companies to use the freed-up working capital for investments. While options A, C, and D may be benefits associated with lean practices, they do not directly relate to the financial flexibility gained from lower inventory levels.