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Exam CSCP topic 1 question 539 discussion

Actual exam question from APICS's CSCP
Question #: 539
Topic #: 1
[All CSCP Questions]

Which of the following supplier actions is most likely to provide an incentive for retailers to share demand data with their trading partners?

  • A. Implementing vendor-managed inventory (VMI) at the retailers
  • B. Executing capacity-reservation contracts with the retailers
  • C. Including a requirement in the supply contract
  • D. Developing demand-sharing software for the retailers
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Suggested Answer: A 🗳️

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Rajiv8047
11 months, 1 week ago
Selected Answer: A
In a VMI arrangement, the supplier is responsible for maintaining the inventory levels at the retailer's store or warehouse.
upvoted 1 times
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igrd
1 year, 7 months ago
Selected Answer: A
A. Implementing vendor-managed inventory (VMI) at the retailers is the supplier action that is most likely to provide an incentive for retailers to share demand data with their trading partners. With VMI, the supplier takes responsibility for managing the inventory levels at the retailer's location based on the demand data shared by the retailer. By doing so, the supplier can ensure that the retailer does not run out of stock while reducing excess inventory and the risk of stockouts. This approach also incentivizes the retailer to share accurate demand data to ensure that the supplier can effectively manage inventory levels.
upvoted 3 times
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C (25%)
B (20%)
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