Discuss APICS CSCP Exam Topic 6 Question 121

A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times. Which of the following actions is most likely to reduce stockouts?

BStandardize the items.

CIncrease minimum inventory levels for the items.

DInitiate a vendor-managed inventory (VMI) program for the items.

AAssign personnel to manage the items.

Suggested Answer: C

Increasing the minimum inventory levels for critical items ensures that there is a buffer stock available to prevent stockouts. This approach is straightforward and effective for items that are inexpensive but critical to the production process. It helps maintain continuous production by ensuring that these essential items are always available when needed, thereby reducing the risk of production delays due to stock depletion.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill Education.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Get Premium CSCP Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

25 comments · newest first

Merlyn 3 months ago

That could work too, but takes time.

Ernestine 3 months ago

What about finding alternative suppliers?

Harris 4 months ago

Definitely! It prevents running out.

Lucy 5 months ago

I think increasing safety stock could help.

Vannessa 5 months ago

Surprised they haven't fixed this already!

Shawnda 5 months ago

Have they considered diversifying suppliers?

Jean 6 months ago

But what if demand spikes unexpectedly?

Franchesca 6 months ago

Totally agree, that would streamline things!

Heike 6 months ago

Just-in-time inventory could help a lot.

Isadora 6 months ago

Hire a psychic to predict when the next stockout will happen. Then we'll be ready!

Emmanuel 6 months ago

How about we just pray the supply gods bless us with more inventory? Worked for me in college.

Candra 6 months ago

Just-in-time inventory management, my friend. That's the way to go.

Jean 7 months ago

Increase the safety stock, duh!

Melina 7 months ago

I recall a similar question where increasing order frequency was suggested. That might be relevant here too!

Scarlet 7 months ago

It seems like implementing a just-in-time inventory system could reduce stockouts, but I need to double-check that concept.

Haley 8 months ago

I'm not entirely sure, but I remember a practice question about reorder points. Maybe adjusting those could help?

Tawanna 8 months ago

I think we discussed safety stock in class, which might help prevent stockouts for those critical items.

Chi 8 months ago

I feel pretty confident about this. Increasing the order frequency or quantity for those items seems like the most obvious solution to prevent future stockouts.

Antonio 8 months ago

This is a tricky one. I'd want to consider factors like lead times, supplier reliability, and safety stock levels. Gotta make sure I cover all the bases here.

Florinda 8 months ago

Okay, let's think this through. I'd probably start by analyzing the current inventory levels and usage patterns for those critical items. That could help identify the root causes of the stockouts.

Walton 9 months ago

I'm a little unsure about this one. There could be a few different approaches to reducing stockouts, like increasing order quantities or improving demand forecasting.

Lai 9 months ago

Hmm, this seems like a pretty straightforward question. I'd focus on ways to improve the supply chain and inventory management for those critical items.

Elouise 3 months ago

↳ replying to Lai

And establishing better supplier relationships is crucial too.

Sena 3 months ago

↳ replying to Lai

Definitely! Regular audits can help.

Roselle 3 months ago

↳ replying to Lai

Improving inventory management is key.

APICS CSCP Exam - Topic 6 Question 121 Discussion