Discuss APICS CSCP Exam Topic 3 Question 112

A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?

ATighten the quality tolerances

BImplement a supplier certification program

CImplement quality inspection at the receiving dock

DCharge back to the supplier the rework and scrap costs

Suggested Answer: B

Implementing a supplier certification program involves setting quality standards and certifying suppliers that meet these standards consistently. This proactive approach ensures that suppliers are capable of delivering quality products, reducing the occurrence of quality issues that disrupt production. Tightening quality tolerances and implementing inspection at the receiving dock are reactive measures that address issues after they occur, while charging back rework costs may strain supplier relationships. A supplier certification program promotes long-term quality improvement and fosters a collaborative relationship between the company and its suppliers. Reference:

Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2019). Operations Management: Processes and Supply Chains. Pearson.

Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability and Supply Chain Management. Pearson.

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27 comments · newest first

Emeline 10 months ago

Charging back costs? Not sure if that’ll solve the root problem.

Sherman 10 months ago

Quality inspection at the dock is a must! Can't risk bad parts.

Rodrigo 10 months ago

I think all options have merit, but VMI needs better supplier relations first.

Fabiola 10 months ago

Tightening quality tolerances might just push suppliers away.

Sommer 11 months ago

Implementing a supplier certification program seems key!

Jeannetta 11 months ago

Charging back to the supplier for rework costs sounds tough but might motivate them to improve their processes. I feel like we had a case study on this.

Makeda 11 months ago

Quality inspection at the receiving dock seems like a common approach, but I wonder if it would just be a band-aid solution instead of addressing the root cause.

Alaine 11 months ago

I think implementing a supplier certification program could be effective, but I'm not entirely sure how it would work in practice.

Fidelia 12 months ago

I remember discussing how tightening quality tolerances might not always solve the underlying issues with suppliers. It could just lead to more rejections.

Karon 12 months ago

I'm a bit stumped on this one. There are pros and cons to each option. I'm tempted to go with the supplier certification program, but I'm also curious about the chargeback approach. That might light a fire under the suppliers to get their act together.

Niesha 12 months ago

I think the supplier certification program is the way to go. That will help ensure our key suppliers are meeting our quality standards. Tightening tolerances could backfire, and inspections at the dock are just a band-aid. We need to address the root cause with the suppliers.

Jade 1 year ago

Hmm, I'm leaning towards implementing quality inspection at the receiving dock. That way we can catch any issues before they disrupt production. But I'm also wondering if charging back the rework and scrap costs to the supplier might incentivize them to improve their quality.

Elfriede 1 year ago

This is a tricky one. I'm not sure if tightening the quality tolerances is the best approach, as that could just lead to more rejections and delays. Maybe a supplier certification program would be better to ensure consistent quality.

Gracia 1 year ago

Hmm, a supplier certification program sounds like a lot of work. Why don't we just make the suppliers wear dunce caps when they deliver bad parts? That'll teach 'em!

Charlie 1 year ago

Tightening the quality tolerances? Isn't that just putting a bandaid on the problem? We need to address the root cause.

Isaac 1 year ago

↳ replying to Charlie

B) Implement a supplier certification program

Terry 1 year ago

↳ replying to Charlie

A) Tighten the quality tolerances

Marti 1 year ago

↳ replying to Charlie

B) Implement a supplier certification program

Cherilyn 1 year ago

↳ replying to Charlie

A) Tighten the quality tolerances

Lettie 1 year ago

Charging back the rework and scrap costs to the supplier is a good way to hold them accountable. They need to bear the consequences of their poor quality.

Veronika 1 year ago

Quality inspection at the receiving dock seems like a good idea. That way we can catch any issues before they disrupt production.

Joseph 1 year ago

I think implementing a supplier certification program would be the most effective solution. It'll help ensure consistent quality from the suppliers.

Tyra 1 year ago

↳ replying to Joseph

B) Implement a supplier certification program

Kristeen 1 year ago

↳ replying to Joseph

A) Tighten the quality tolerances

Ettie 1 year ago

I think charging back the rework and scrap costs to the supplier is the way to go.

Lorrie 1 year ago

I disagree, I believe implementing a supplier certification program would be more effective.

Gearldine 1 year ago

I think tightening the quality tolerances would be the best option.

APICS CSCP Exam - Topic 3 Question 112 Discussion