AMA Exam PCM Topic 9 Question 106 Discussion

Actual exam question for AMA's PCM exam

Question #: 106
Topic #: 9

[All PCM Questions]

Toby, the manager in charge of distribution for Nissa Designs, believes that a push strategy will increase efficiency for the company. Which of the following is a feature of a push strategy?

AMerchandise is allocated to stores based on previous sales forecasts.

BIt involves shipment of the entire merchandise line based on current sales forecast.

CIt offers a lesser likelihood of overstocked goods.

DIt determines the amount of merchandise based on data gathered from POS terminals.

EIt is essentially a customer-driven system.

Show Suggested Answer

Suggested Answer: D

by Brandon at Jan 22, 2025, 01:49 PM

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Claudio

5 days ago

I see both perspectives. Allocating merchandise based on previous sales forecasts can help prevent overstocked goods, but shipping based on current sales forecast can also ensure the right amount of merchandise is available.

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Jennie

6 days ago

I think the correct answer is B. A push strategy involves shipping the entire merchandise line based on forecasts, rather than waiting for customer orders.

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Wynell

7 days ago

I disagree, I believe merchandise is allocated to stores based on previous sales forecasts for a push strategy to be efficient.

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Jacob

9 days ago

I think a push strategy involves shipping the entire merchandise line based on current sales forecast.

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